The UK Gambling Commission (UKGC) is reportedly seeking a settlement to a lawsuit by media mogul Richard Desmond’s Northern & Shell PLC against the regulator. The Telegraph reported that the matter is said to be further discussed in the coming weeks.
Northern & Shell initiated the challenge earlier this year after the gambling commission crowned Allwyn as the next National Lottery Operator. Allwyn replaced Camelot as the National Lottery Operator.
The publishing group, which was among the bidders, has filed the claim implying that the procurement process in 2022 was controversial. This comes as Allwyn faces challenges regarding its technological upgrade, which has caused it to miss its target deadlines several times.
Northern & Shell claimed that the UKGC mishandled the bidding process. The company insisted that the bidding hurt its business two years later and sought £200 million in damages. Other bidders have laid out similar challenges on the commission before.
This has led to concerns about Allwyn being inexperienced to be UK National Lottery and Northern & Shell’s claim that it is not a suitable successor to Camelot. However, Camelot and IGT, its tech provider, have buried the hatchet.
Some tech experts have spoken in favour of Allwyn, arguing that the integration between two incompatible systems is no small task.
Allwyn’s controversial term so far
Allwyn’s operation as the new National Lottery Operator has been controversial throughout. It comes as the company has so far struggled to prove that it would be able to fulfill its promise to double the lottery’s contributions to good causes.
For three decades, Camelot was the National Lottery Operator and helped raise billions to charitable causes. Allwyn claimed that it would more than double the proceeds to good causes from nearly £18 billion to £38 billion after winning the licence for the National Lottery.
The operator said the plan is feasible owing to the implementation of a massive technology upgrade for the National Lottery and introduction of new games that would help increase sales.
However, the process faced hurdles as the transfer from Camelot to Allwyn in February this year which delayed the complete implementation of the technology upgrade. According to sources, Allwyn may experience further delays to its technology upgrade, pushing it to mid-2025 if not even later in the year.
Elevate your business at SiGMA Eurasia Summit, February 23-25, 2025. Connect with 14,000+ industry leaders, hear from 400+ expert speakers, and seize new opportunities in Dubai.
