Camelot, the operator of the National Lottery since its inception in 1994, has initiated High Court proceedings against the Gambling Commission following the Commission's decision last month to award Allwyn, formerly known as the Sazka Group, the first contract to operate the lottery outside of Camelot in its 28-year history.
Camelot's Chief Executive Nigel Railton expressed the company's surprise at the decision, stating, "We are launching a legal challenge today in our capacity as an applicant for the fourth licence because we firmly believe that the Gambling Commission has got this decision badly wrong. When we received the result, we were shocked by aspects of the decision."
He emphasized that despite extensive correspondence, the Gambling Commission has not provided satisfactory explanations, leading Camelot to seek court intervention to clarify the decision-making process. Railton also highlighted that the change in operations could affect a significant number of employees, noting that they deserve a thorough explanation regarding Allwyn’s selection.
"Irrespective of Camelot’s dual roles as current operator and applicant for the next National Lottery licence, the competition is one of the largest UK government-sponsored procurements and the process deserves independent scrutiny," he stated. He stated that over 1,000 Camelot employees are committed to their work in running the National Lottery and deserve a proper explanation.
While Camelot did not disclose specific aspects of the selection process to be challenged in court, a report from the Sunday Telegraph claimed that Camelot initially received the highest score in the assessment of bids. However, this scoring system included a “risk discount” designed to account for the possibility that an operator might not meet its projected goals. According to the report, the adjustments in the “risk discount” subsequently allowed Allwyn to rise to first place in the rescoring.
In response to Camelot’s legal challenge, the Gambling Commission defended its decisions and the process followed, stating, "We regret Camelot’s decision to bring legal proceedings following the outcome of a highly successful competition for the fourth national lottery licence. The competition and our evaluation have been carried out fairly and lawfully in accordance with our statutory duties, and we are confident that a court would come to that conclusion."
A spokesperson highlighted their commitment to ensuring a fair competition, aimed at protecting players and supporting good causes through the National Lottery. They added that the legal challenge would complicate the transition from the third to the fourth licence but expressed trust in Camelot to meet its obligations until the end of its term in February 2024.
The spokesperson remarked, "Our priority is to continue to work to implement our decision and ensure a seamless and timely transition to the next licence, for the benefit of participants and good causes. In order to protect the integrity of the process, we will not be able to discuss the specifics until litigation has concluded."
Upon Allwyn's selection, the company noted that the Gambling Commission deemed its bid the best choice for enhancing returns to good causes by revitalizing the National Lottery sustainably and safely.
