Earlier this month, the Gambling Commission (GC) in the UK announced that it selected Allwyn Entertainment as the preferred applicant to win a license to operate the National Lottery in the country. This was rather an unpleasant surprise for Camelot, which has been in charge of the lottery for the last 28 years. Now, a new report reveals that Camelot may consider challenging GC’s decision about the lottery contract.
Camelot Reportedly Plans to Take the GC to Court
Camelot was in charge of the lottery in the UK since 1994, and it expected to continue running it. However, the company’s license is set to expire next year, which is why it submitted a bid for the contract with the Gambling Commission. In an unexpected turn of events, Camelot lost the contract for the lottery to Allwyn, a company owned by Karel Komarek, the Czech billionaire. Last week, the Telegraph revealed that Camelot may consider legal actions against the GC due to the lottery contract.
Camelot took an issue with a 15% discount rule that was supposed to be factored in the UKGC’s final consideration and was part of the bidding process. However, upon announcing its decision, it became clear that the regulator had chosen to ignore the previously mandated discount factor. This, Camelot believed, significantly diminished its chances of securing the license and had ruined an otherwise “winning” bid. With that in mind, the company is yet to release an official statement on the topic.
Good Causes Benefit from the National Lottery
According to the GC, more than 600,000 good causes have benefited from the National Lottery. That represents some $59 billion going to good causes, however, those proceeds are expected to continue growing. Financial projections predicted some £38 billion ($49.8 billion) to go to good causes with Allwyn as the winner of the lottery contract.
Upon selecting Allwyn as the favorable candidate, the GC’s chief executive, Andrew Rhodes, revealed that he is confident about the success the new license will bring. Moreover, he explained that picking Allwyn will help maximize the return to good causes, while at the same time promoting innovation and protecting “the unique status of the National Lottery.”
If Camelot doesn’t file legal proceedings against the GC, Allwyn is expected to take the control of the National Lottery next year. Its license will be valid for 10 years. So far the regulator hasn’t officially commented regarding the possible legal threat from Camelot.