International Game Technology (IGT) has decided to abandon its legal challenge against Allwyn being awarded the fourth UK National Lottery licence.

The dispute originated in July 2022 when the Court of Appeal granted IGT permission to challenge the selection process. Allwyn was named as the successful bidder for the National Lottery licence by the Gambling Commission in March 2022.

In July 2023, the Court ruled that IGT did not have legal standing for a damages claim against the Commission. IGT appealed this decision in September, but this week the company requested that the appeal be dismissed. As a result, IGT will no longer pursue the damages claim.

The Gambling Commission stated that it stands by its assertion that it conducted a fair and rigorous competition, and that its evaluation was carried out lawfully in accordance with its statutory duties. The Commission’s top priority is to continue working to implement its decision for the benefit of participants and good causes. The fourth National Lottery Licence is set to be granted on February 1, 2024.

Allwyn has made commitments to invest in the National Lottery, which is expected to bring about growth and innovation across the National Lottery’s products and channels. This will result in increased contributions to good causes while ensuring the protection of participants and propriety.

Camelot Group, the long-standing operator of the National Lottery, also contested the decision to award the licence to Allwyn. In addition to these two companies, other parties that were involved in the bidding process included The New Lottery Company, owned by Health Lottery operator Northern and Shell, and Italy’s Sisal.

Despite launching a High Court challenge in April 2022, Camelot ultimately dropped its legal bid in September 2022. This move was met with Allwyn agreeing to waive all claims for costs or damages against Camelot.

Following the conclusion of the legal challenge, Allwyn and Camelot have since developed a closer relationship. Allwyn is set to take over as the lottery’s operator, following its acquisition of Camelot UK and Camelot Lottery Solutions. The impact of these acquisitions has been significant, with Allwyn announcing a 98% rise in consolidated total revenue in Q3 of 2023, largely driven by the double Camelot acquisition.

The UK market has become the core market for Allwyn, with total revenue in the UK reported at €956.5m (£822.3m/$1.05bn) in Q3.

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