Technology

IGT Faces Legal Defeat after Failing to Win UK's National Lottery Contract

IGT experiences another court defeat in the UK as Allwyn takes over the National Lottery instead.

SymClub
May 10, 2024
2 min read
Newscasino
A UK National Lottery sign hangs over a vendor’s store. IGT lost a lawsuit that challenged the...
A UK National Lottery sign hangs over a vendor’s store. IGT lost a lawsuit that challenged the decision to award the National Lottery license to Allwyn.

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International Game Technology (IGT) has been persisting in its opposition to the UK's decision to hand over the National Lottery to Allwyn, but it has yet to achieve victory in this battle. IGT attempted to challenge the UK's decision multiple times but was unsuccessful each time.

Camelot UK and IGT, the two entities managing the National Lottery, had both filed an appeal against the UK Gambling Commission's (UKGC) selection of Allwyn as the fourth NL licensee in September 2021. While Camelot later dropped their appeal, IGT refused to give up and took legal action once again in January 2023.

In a major setback for IGT's ambitions of staying involved with the National Lottery, the High Court of England and Wales turned down their latest legal challenge. Following this verdict, the UKGC vowed to ensure a smooth and prompt transition while concluding another chapter of their book on lottery legal disputes.

A Persistent Battle

Although the initial set of allegations was dropped in September 2022 and Camelot withdrew its complaint against the UKGC, IGT refused to yield. It filed its second case against the Gambling Commission’s verdict in January 2023.

This time, IGT made a different claim, accusing the regulator of violating human rights. This was based on the £600 million (US$713.52 million) financial impact the transfer had on the company.

With the High Court's decision now in favor of the UKGC, this second case that IGT initiated is no longer valid. The justices concluded that the company lacked the necessary authority to file a lawsuit against the UKGC. This loss means IGT has lost any chance of claiming compensation for the damage it believes the decision led to.

There remains another remaining case in the pipeline, involving The New Lottery Company (TNLC) founded by billionaire Richard Desmond to compete for the license. Like IGT, TNLC has been fighting the decision to give Allwyn the license.

UKGC: Committed to Fairness

Now that it has resolved several lottery lawsuits, the UKGC has reaffirmed its dedication to maintaining fairness in the tender process. It stressed that its thorough investigation into the licensees was carried out diligently and within the bounds of legal regulations.

The regulator claims that by granting it the authority to select a suitable operator and safeguarding the interests of consumers, an even playing field was created. The UKGC said it had to spend £155 million (US$198.71 million) from lottery ticket sales to pay for the costly process.

Furthermore, the UKGC emphasized its commitment to managing the National Lottery efficiently. It plans to prioritize its support for worthwhile causes and its social impact by fostering innovative fundraising initiatives.

Come February next year, Allwyn is set to assume control of the National Lottery for a decade, bringing an end to Camelot UK's tenure. By acquiring Camelot Lottery Systems, Allwyn has satisfied all legal and regulatory requirements necessary to assume control from the previous operator.

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Source: www.casino.org

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