Earlier this year, the Gambling Commission awarded Allwyn the contract for the UK Lottery. It was believed that this may be the end of the reign of Camelot which held the contract for nearly three decades since 1994. However, Camelot did not agree with the regulator’s decision and decided to challenge it in court.
Legal Hurdle between Camelot and the GC Continues
Now, according to a new report, Camelot’s decision to challenge the loss of the UK Lottery contract to Allwyn may delay the funding of good causes. What’s more, such a legal challenge may temporarily suspend the lottery for the first time since its launch back in 1994. Recently, The Observer revealed details regarding a legal submission by the regulator in the UK.
“In the worst scenario, there will be a gap in service between the expiry of the third license on 31 January 2024 and the commencement of the fourth license,”explains the Gambling Commission
The submission reveals that “in the worst scenario,” a legal challenge may create a gap in the service between the date when the third license expires and the fourth lottery license starts. In other words, from January 31, 2022, the date when the third lottery license is set to expire, there may be a service gap. Ultimately, according to the Gambling Commission, this may disrupt the payments to good causes. An estimate of £1 billion ($1.2 billion) may not reach good causes, the regulator claims in its recent legal submission.
“The commission anticipates there will be an overall shortfall of payment to good causes of at least £1 billion and, in the case of an interregnum, considerably more,”reveals the legal submission by the Gambling Commission
Allwyn Expected to Increase the Funds for Good Causes
One of the reasons why Allwyn won the National Lottery license was a promise for an increase of the money to good causes. With Allwyn as the licensee holder, good causes are expected to get some £38 billion ($43.9 billion) for the duration of its 10-year contract. In contrast, for the 28 years with Camelot spearheading the lottery, nearly £46 billion ($52.9 billion) were allocated toward good causes. Overall, more than 600,000 good causes and organizations benefited from the National Lottery contributions.
“Any delay in the handover of the lottery that denies money going to good causes would be a disaster, particularly at a time when people are facing increasing hardship.”Kevin Brennan, Committee member of the Digital, Culture, Media and Sports (DCMS) committee and Labor MP
Kevin Brennan, the Committee member of the Digital, Culture, Media and Sports (DCMS) committee and Labor MP, commented on the topic in a statement released by The Guardian. He explained that a delay in the handover of the lottery may result in dire consequences for good causes. According to Brennan, currently, many people are facing hardship so it would be best if this legal hurdle is resolved as quickly as possible.