National Lottery: Camelot launches legal challenge over licence loss

The company that currently runs the National Lottery is taking legal action after losing out on the next licence.

Camelot has started legal proceedings against the Gambling Commission after rival Allwyn was selected as the preferred applicant for the lottery's next licence beginning in 2024.

Camelot's boss said he believed the regulator had "got this decision badly wrong".

The Gambling Commission said it had run a "fair and robust" competition.

The National Lottery is one of the world's largest lotteries and has raised more than £45bn for 660,000 causes across the UK.

It has also played a part in funding training and facilities over the past three decades for Great Britain's Olympic and Paralympic athletes.

While not being picked as the preferred applicant for the next licence, Camelot was named as the "reserve applicant".

"When we received the result, we were shocked by aspects of the decision," said Nigel Railton, Camelot's chief executive.

He accused the Gambling Commission of failing "to provide a satisfactory response" when the move was challenged.

"We are therefore left with no choice but to ask the court to establish what happened," he said.

• Camelot to lose licence to run National Lottery

• Coming for Camelot: The battle to land the lottery

Allwyn Entertainment Ltd is a UK-based subsidiary of Europe's largest lottery operator Sazka, which is owned by Czech oil and gas tycoon Karel Komarek.

It was awarded the next licence, which includes Lotto, Thunderball and EuroMillions games in the UK, last month.

Allwyn signalled its intent to run the National Lottery by launching in early 2021. Its advisory board includes former members of the London 2012 Olympics organising committee, Lord Coe and entrepreneur Sir Keith Mills.

Team GB Olympic athletes, like Adam Peaty, have benefited from National Lottery funding

The Gambling Commission said that the competition it ran was "fair and robust".

In a statement, it said: "We regret Camelot's decision to bring legal proceedings following the outcome of a highly successful competition for the fourth National Lottery licence."

It added it had taken "every step possible to ensure a level playing field for all interested parties".

Camelot's Nigel Railton cited concerns over the future of the company's 1,000 employees who had "worked tirelessly" on the National Lottery since its launch.

"At the very least, they are owed a proper explanation," he wrote, calling for "independent scrutiny" of the process in the High Court.

Last month, Allwyn described the award as a "fresh start" for the lottery.

"To the employees of Camelot, you will all be welcome to join us on this exciting new journey for the National Lottery," the bid's chairman Sir Keith Mills wrote in March.

He assured Camelot employees they would be "protected in any transfer". "We will make sure the National Lottery works for all," he said.