IGT Sues UK Gambling Commission Over National Lottery License

IGT is the Italian-based partner of Camelot, the license holder for the UK National Lottery until 2024, which last year lost the bid for the fourth license to Allwyn.

After Camelot IGT Challenges the Regulator’s Decision

The Times reported that the legal battle over the UK Gambling Commission’s decision to award the fourth National Lottery license to Czech company Allwyn continues with full force. IGT submitted a new claim against the regulator just before the Christmas holidays on the grounds of Article 1 of the European Convention on Human Rights (ECHR) stating that it has lost “marketable goodwill” due to the Commission’s decision.

In case the Italian gaming technology provider wins in court it may be entitled to compensation of £600 million ($714 million), which may come from lottery money. This means that good causes that benefit from National Lottery funds may be deprived of that sum.

UK MPs reacted negatively to the news directing harsh criticism toward IGT. Mansfield MP Ben Bradley accused the Italian company of aiming for lottery money that is meant to help good causes in some of Britain’s most vulnerable communities. Hastings and Rye MP deemed preposterous the fact that IGT is basing its claim on charity money on the European legislation for human rights.

Camelot Was the First to Launch a Legal Challenge Against UKGC

The current operator that competed for the fourth National Lottery license, Camelot, was the first to file legal claims against the decision of the UK Gambling Commission to award the new lottery license to another company. Camelot’s lawsuit alleged discrepancies in the assessment procedure performed by the UK Gambling Commission. In response, the regulator said that both the tender and the assessment of the bids have been performed fairly and lawfully.

After a temporary suspension that did not let the Commission sign any agreements with Allwyn, a court stipulated a decision to lift the suspension. Then Camelot appealed and another suspension was put in place. Eventually, Camelot announced it is withdrawing its legal claims.

This news was quickly followed by an announcement that Allwyn is acquiring Camelot for an alleged sum of £100 million ($119 million).  So the legal battle quickly turned into a win-win situation for both companies. Camelot, which had stated that it may go bankrupt because of the loss of the National Lottery license, was saved, while Allwyn is now able to strengthen its presence in the British gambling market.