Things are getting increasingly murky in the ensuing fight to gain control of the National Lottery. The latest in the web of legal battles involves International Game Technology (IGT), the technology partner of Camelot, taking the UK Gambling Commission (UKGC) to court.

Suing under European human rights laws, IGT claims that the UKGC’s decision to award the fourth lottery license to Czech-owned Allwyn has cost it ‘marketable goodwill.’ To understand the conditions that brought us to where we are today, we have to go back slightly in time to the UKGC’s decision to drop the long-standing National Lottery Operator Camelot. The huge and certainly lucrative responsibility was consequently handed to Allwyn, a subsidiary of Czech lottery giant Sazka, after a competitive bidding process.

Camelot’s Initial Legal Bid

Initially, when the UKGC announced its decision to award Allwyn one of Britain’s biggest public sector contracts, Camelot dashed the corridors of justice. The company sought to stop Britain’s number 1 regulator in its tracks. Camelot’s initial bone of contention was that the entire tender award process was flawed and that the UKGC changed the rules at the final moment.

The matter was heard before Justice Finolla O’ Farrel ruled that the UKGC had committed no offenses in its tendering process. Effectively the court awarded the reign of control of the National Lottery to Allwyn. With that decision, the temporary suspension of the contract that was in place was lifted. However, Camelot was never going to go out silently. It appealed the decision, and another temporary ban was imposed.

Eventually, Camelot announced that it was dropping the case. The move was followed by the interesting news that Allwyn was acquiring Camelot in a deal projected to be worth over $115 million. So, in many people’s eyes, particularly those privy to the situation, the potential legal crisis had been nixed. Allwyn was projected to close the purchase of Camelot by the end of this quarter. However, the current court battles may put a spanner in the works of a deal already on its way to completion.

IGT’s Bone(s) to Pick

In the suit, IGT states that the UKGC is in violation of the first article of the European Convention on Human Rights (ECHR) and the European Union Human Rights Act. Essentially Article 1 touches on the need for EU members to enforce the rights and freedoms outlined in chapter 1. Chapter 1 focuses solely on the rights of individuals, and it appears IGT is arguing that the UKGC is preventing it from acting in a charitable capacity.

Moreover, the prospect that Allwyn will also purchase Camelot’s assets means that IGT may lose market share due to the power, or rather business transfer. While Allwyn will strengthen its position in the British market, IGT may be significantly weakened.

So, if the courts agree with this assertion, the Italian-led IGT could very well receive payments for damages worth a whopping £600 million ($714.2 Million). But then, one of the biggest issues with such a verdict is that these funds could very well come from the National Lottery’s good causes funds, depriving it of vital monies.

It is worth noting that since it was formed in 1994, the National Lottery has disbursed approximately £46 Billion ($54.7 Billion) to worthy causes in society. If IGT’s lawsuit is to be successful, then this fundamental aspect of the National Lottery’s workings could be compromised.

Lawmakers not Impressed by the Move

It is fair to say that a section of Britain’s lawmakers did not take kindly to IGT’s move to go to court. The criticism was notably louder by MPs Ben Bradley and Sally Ann Hart. Hart expressed her displeasure with the legal decision by IGT, saying:

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“The fact that charity money raised by the British public for local causes and projects is at risk of being raided by a partner of Camelot using the ECHR is completely unacceptable.”

Similarly, Bradley accused the Italian company of targeting Britain’s Lottery money meant to help the less fortunate in the country.

Further Stumbling Blocks Await Camelot

In the fortunate scenario that the lawsuit against Britain’s gaming regulator falls through, then Camelot wouldn’t be entirely out of the woods. This is because of the mounting political pressure on the UKGC to ensure the standards of the funding of the good causes project does not drop. This topic was a matter of extensive discussions during the initial award of the National Lottery tender. It even attracted high-profile opinions from Olympians and Paralympians like Lauren Rowles, Ellie Robinson, and Adam Peaty, who appeared before a parliamentary committee in December 2022.

Now that Allwyn is completing the acquisition of Camelot, it is vital to note that a cross-political group of MPs had previously found Camelot wanting with its contribution to the good causes funding. To steer clear of the watchful gazes of the parliamentarians, Allwyn will need to make a more significant financial contribution to the Good causes funding kitty as the incoming national lottery operator.