IGT Files Lawsuit Against the United Kingdom Gambling Commission

International Game Technology (IGT) has filed a lawsuit against the UK Gambling Commission (UKGC) over the next 10-year contract for the National Lottery.

IGT, the technology partner of current National Lottery operator Camelot, is alleging that it has lost “marketable goodwill” due to the transition process to new operator Allwyn. The legal dispute, which was thought to have been resolved in November, saw IGT and Camelot sue the UKGC in an attempt to overturn the decision to award Allwyn the fourth National Lottery license.

In September, the High Court temporarily blocked the UKGC’s enabling rights, but later dropped the case, allowing the regulator to award the license to Allwyn. If successful, IGT’s lawsuit could result in damages of up to £600m ($809m) paid from the National Lottery’s Good Causes fund.

Allwyn to Take the Reigns in 2024

The transition process for the National Lottery is set to begin next month, with Allwyn set to take over as operator on January 1, 2024. In November 2021, the legal dispute between IGT, Camelot, and the UKGC was thought to have been resolved, with the High Court temporarily blocking the UKGC’s enabling rights. However, the case was later dropped, allowing the regulator to formally award the license to Allwyn.

Since the license was awarded, Allwyn has consolidated its position as a market leader in the UK lottery space by acquiring Camelot UK from its parent company, the Ontario Teachers Pension Plan (OTPP).

However, IGT’s renewed lawsuit could potentially cause delays and drain money from the Good Causes fund. The company could receive up to £600m in damages if the litigation is successful.

The management of the National Lottery’s charitable programs was a key area of debate during the Fourth Licence Contest, with Olympic and Paralympic athletes such as Adam Peaty, Lauren Rowles, and Ellie Robinson sat before a parliamentary committee in December 2021, shedding light on their personal experiences and views on this issue.

A recent report by a cross-party group of MPs found that Camelot had yielded “mixed results” in Good Causes funding, and called on Allwyn to make a larger financial contribution to gambling charity GambleAware once they become the new lottery manager.

MPs such as Ben Bradley and Sally-Ann Hart have criticized the potential use of money from the Good Causes fund to pay for damages in the event of IGT’s lawsuit being successful, with Hart stating that it is “completely unacceptable” for “charity money raised by the British public for local causes and projects” to be at risk.