The UK High Court has ruled in favor of the Gambling Commission in a legal dispute involving International Game Technology (IGT). IGT had filed claims for damages against the Gambling Commission in relation to the Fourth National Lottery Licence. The case stemmed from the awarding of the licence to Allwyn and the subsequent acquisition of Camelot’s UK Lottery division by Allwyn.
Background:
The dispute arose in early 2022 when the National Lottery announced Allwyn as its Preferred Applicant for the Fourth National Licence. Camelot, which had held the licence since 1994, initiated legal challenges in an attempt to retain the licence. After Camelot withdrew its court appeals, Allwyn was formally granted the licence in September 2022.
Tensions escalated when Allwyn acquired Camelot’s UK Lottery division from the Ontario Teachers’ Pension Plan. Subsequently, Camelot involved its partner company, IGT, in legal proceedings against the Gambling Commission.
IGT filed a lawsuit against the Gambling Commission on 5 January, claiming damages of approximately £600 million ($717 million). The company argued that awarding the Fourth Lottery Licence to Allwyn had resulted in the loss of “marketable goodwill.”
High Court Ruling:
The High Court conducted a hearing on 28 July 2023 and ultimately dismissed all claims made by IGT. This ruling effectively brings an end to the litigation, and IGT cannot pursue further claims for damages against the Gambling Commission.
Gambling Commission’s Response:
In response to the court’s decision, the Gambling Commission issued a statement reaffirming its commitment to conducting a fair and lawful competition for the Fourth National Lottery Licence. The Commission also noted that the legal claim by The New Lottery Company (TNLC) had been stayed pending the outcome of this legal action.
The Gambling Commission expressed uncertainty about TNLC’s intentions following the court’s ruling. The Commission remains steadfast in its assertion that its evaluation processes were conducted fairly and in accordance with its statutory duties.
Allwyn’s Financial Results:
In its most recent financial results, Allwyn reported a remarkable 80% increase in total revenue and a substantial 40% rise in net revenue.
The UK High Court’s dismissal of IGT’s legal claims against the Gambling Commission marks the conclusion of a complex legal dispute related to the awarding of the Fourth National Lottery Licence. Allwyn’s successful acquisition of the licence and subsequent growth in revenue highlight the dynamic nature of the UK’s lottery and gaming industry.