Legal
IGT Withdraws Legal Challenge Against UK National Lottery License Award to Allwyn
IGT Concludes Legal Battle Over National Lottery License Decision
International Game Technology (IGT) has officially withdrawn its legal challenge regarding the UK National Lottery’s fourth license, initially awarded to Allwyn. This development marks a pivotal turn in the saga that has been a focal point in the UK’s gaming industry since 2022.
Legal Challenge Background and Court Developments
IGT’s challenge dates back to July 2022 when the company contested the Gambling Commission’s decision to name Allwyn as the successful bidder for the license. The Court of Appeal initially granted IGT permission to challenge the selection. However, by July 2023, IGT faced setbacks as the Court ruled the company lacked legal standing for a damages claim against the Commission.
IGT’s Strategic Withdrawal and Commission’s Response
After an unsuccessful appeal in September 2023, IGT requested the Court dismiss the appeal, effectively ceasing its pursuit for damages. The Gambling Commission reaffirmed its stance on conducting a fair and lawful evaluation process, emphasizing its commitment to the integrity of the National Lottery’s operation.
Camelot’s Similar Path and Resolution with Allwyn
IGT followed in the footsteps of Camelot Group, the National Lottery‘s operator since its inception in 1994. Camelot also legally contested the decision but eventually withdrew its challenge in September 2022, leading to a reconciliation with Allwyn, including a waiver of claims for costs or damages.
Allwyn and Camelot’s Transition from Rivals to Partners
The legal disputes between Allwyn and Camelot have evolved into a closer relationship. Allwyn’s acquisitions of Camelot UK and Camelot Lottery Solutions (now Allwyn North America) signify a strategic consolidation in the lottery sector. These acquisitions have significantly influenced Allwyn’s financial performance, evidenced by a 98% rise in consolidated total revenue in Q3 of 2023.
The UK Market at the Core of Allwyn’s Strategy
The UK has emerged as Allwyn’s core market, with substantial revenue growth following the acquisitions. Q3 2023 saw Allwyn’s UK total revenue reach €956.5 million, highlighting the strategic importance of the UK in Allwyn’s operations.
Looking Ahead: The National Lottery’s New Chapter
With the legal challenges resolved and Allwyn set to officially take over the National Lottery operation in February 2024, the UK’s gaming industry anticipates a new era. The focus now shifts to Allwyn’s commitment to innovation, growth, and increased contributions to good causes, supported by the legacy and expertise of Camelot Group.