International Game Technology (IGT) has officially dropped its legal challenge to the award of the 4th UK National Lottery license to Allwyn Entertainment UK Limited (Allwyn).
The case:
The legal case started during July two years ago, aka in 2022. At that time, the Court of Appeal allowed IGT to challenge the decision. The decision was that the UK Gambling Commission (UKGC) had chosen Allwyn as the lucky bidder to be awarded the said license in March two years ago.
During July of the previous year, the Court stated that IGT doesn’t possess legal status for a claim for damages against the aforementioned regulator. Additionally, the IGT made a plea against the decision during September.
However, during this ongoing week, it has requested from the Court to set aside the above appeal, meaning that it has decided to stop seeking the compensation. In this regard, the Commission commented according to the official press release: “We remain resolute that we have run a fair and robust competition and that our evaluation has been carried out fairly and lawfully in accordance with our statutory duties. Our priority is to continue to work to implement our decision for the benefit of participants and good causes. The fourth National Lottery Licence is due to be granted on 1 February 2024.”
In addition, it added: “Allwyn has committed to investment in the National Lottery that is expected to deliver growth and innovation across the National Lottery’s products and channels, resulting in increased contributions to good causes, subject to the protection of participants and propriety.”
Change of decision:
However, IGT wasn’t the sole party to formally challenge the ruling. Another called the Camelot Group, which has managed the National Lottery since its debut during 1994, searched for a legal way to officially block the ruling. Furthermore, Camelot was one of the bidders for the mentioned license, along with Allwyn. Among the other bidders were The New Lottery Company, which owner is Health Lottery operator Northern and Shell, and Sisal, based in Italy.
During April two years ago, Camelot debuted a High Court challenge over whether the UKGC has legally rewarded the license to Allwyn. This resulted in the suspension of the official issuance of the aforementioned license to Allwyn. The suspension was lifted by the High Court during June 2022. But, the legal challenge carried on and IGT and Camelot approached the Court of Appeal during July of 2022. Alongside IGT, the Camelot was also granted the permission to make a plea.
Relatedly, as for the Camelot’s challenge, it was eventually null and void and the Group dismissed the legal bid during September 2022. Subsequently, Allwyn accepted to relinquish any claims for damages or costs against the Group.
The conflict diminishes as Allwyn takes over Camelot:
Although Camelot and Allwyn once clashed over the problem, the 2 firms have grown significantly closer since the end of the legal challenge.
In this sense, Camelot will step down as lottery operator in the next several weeks. However, it will maintain connections to the games it has managed since the mid-1990s. This is via a range of purchase agreements entered into by his successor.
During February 2023, Allwyn officially purchased Camelot UK. In addition, it also purchased Camelot Lottery Solutions (Camelot LS). To reflect the acquisition, the US-facing firm went through a rebranding process and is now called Allwyn North America.
Allwyn has already felt the effect of the purchases, during the third quarter and the first half of the previous year. Throughout the 3rd quarter, Allwyn revealed an increase of 98% in consolidated overall income. This is said to have been fueled by the double purchase of Camelot.
In that regard, other notable number involve consolidated gross gaming income which rose by 98%. In terms of geographic performance, the UK now represents the basic market for Allwyn. The main reason for this is that overall income in the UK during the third quarter was €956.5 million (£822.3 million/$1.05 billion).