IGT drops legal challenge over fourth national lottery license

The case dates back to July 2022, when the Court of Appeal granted IGT permission to challenge the selection. The Gambling Commission named Allwyn as the successful bidder for the National Lottery license in March 2022.

In July 2023, the court declared that IGT had no standing to bring an action for damages against the Commission. IGT appealed that ruling in September, but this week asked the court to dismiss the appeal. The technology giant will not pursue the damages claim any further.

“We remain satisfied that we conducted a fair and robust competition and that our assessment was conducted fairly and lawfully in accordance with our legal obligations,” the commission said.

“Our priority is to continue working on implementing our decision for the benefit of the participants and the good cause. The fourth national lottery license is scheduled to be issued on February 1, 2024.

“Allwyn is committed to investment in the National Lottery which is expected to lead to growth and innovation across all National Lottery products and channels, resulting in increased charitable giving, subject to participant protection and decency.”

IGT follows Camelot in retreat

IGT was not the only party to challenge the decision. Camelot Group, which has run the National Lottery since its inception in 1994, was also looking for a legal way to prevent the move.

Along with Allwyn, Camelot was one of the parties that applied for the license. Also involved were The New Lottery Company, owned by health lottery operator Northern and Shell, and Italian company Sisal.

In April 2022, Camelot filed a lawsuit with the Supreme Court challenging whether the commission had lawfully awarded the license to Allwyn. This resulted in the formal grant of the lottery license to Allwyn being suspended.

The Supreme Court lifted the stay in June 2022. However, the legal challenge continued, with Camelot and IGT appealing to the Court of Appeal in July 2022. Like IGT, Camelot received permission to appeal.

The challenge ultimately failed, and Camelot dropped the legal bid in September 2022. In response, Allwyn agreed to waive all claims for costs and damages against Camelot.

The conflict subsides when Allwyn takes over Camelot’s business

While Allwyn and Camelot once disagreed on the matter, the two companies have become much closer since the end of the legal dispute.

Camelot will step down as operator of the lottery in a few weeks, but will maintain its connection to the games that the company has operated since the mid-1990s. This is done through a series of takeover agreements from the successor.

Allwyn acquired Camelot UK, the current operator of the National Lottery, in February 2023. At the beginning of 2023, the company also acquired Camelot Lottery Solutions (Camelot LS). The US-focused company has since been renamed Allwyn North America to reflect the purchase.

Allwyn has already felt the effects of the acquisitions in both the first half of the year and the third quarter of 2023. In the third quarter, Allwyn reported a 98% increase in total consolidated revenue. This is due to the double takeover of Camelot.

Other standout numbers include the 98% increase in consolidated gross gaming revenue. In terms of geographical performance, the UK is now Allwyn’s core market. Total UK sales for the third quarter were €956.5m (£822.3m/$1.05bn).