High Court Sustains British National Lottery Tender Against Legal Challenge

(AsiaGameHub) –   Richard Desmond’s The New Lottery Company has been unsuccessful in its legal claim against the Gambling Commission’s tender process that granted the National Lottery license to Allwyn.

UK – Richard Desmond’s Northern & Shell Group’s The New Lottery Company (TNLC) has failed in its legal challenge against the British Gambling Commission’s tender process for the National Lottery. The firm contested the outcome after being beaten by Allwyn for the Fourth National Lottery license in 2022.

TNLC cleared the initial phase of the Gambling Commission’s tender, which evaluated applicants’ financial viability. But it was eliminated from the final shortlist of candidates “because of failures to meet mandatory pass/fail requirements”. The pool of applicants was narrowed down to Allwyn and the existing operator Camelot, which has managed the lottery since it launched in 1994.

TNLC claimed that the Gambling Commission inappropriately permitted changes to the transition schedule. However, Justice Joanna Smith of the High Court of England and Wales dismissed this claim, stating that the Commission was entitled to make adjustments “in response to delivery risks” and pointing out that transferring such a major contract necessitated “a reduction in the time available to complete the transition” given “ongoing implementation difficulties.”

Justice Smith threw out TNLC’s challenge, concluding that the process contained “no material errors” and that TNLC had not met mandatory criteria. Her ruling emphasized that the tender process was structured to prioritize “funding for good causes while upholding high standards of player protection and integrity” and was overseen independently at every step.

This ruling marks another setback for Desmond, a former adult entertainment publisher, coming after the Competition Appeal Tribunal rejected the New Lottery Company’s claim last month that Camelot had received an illegal £70 million marketing subsidy.

The trial took place from October 9 to December 2 last year, with an extra day added on January 13. Camelot initially filed legal objections to the license decision but later retracted them after Allwyn bought its operations in February 2023. Allwyn assumed control of the National Lottery in February 2024.

Gambling Commission response

The Gambling Commission has expressed its approval of the High Court’s decision. In a statement, the regulator commented: “This is a significant judgment for the future of The National Lottery that we are pleased to see. The ruling confirms that the Gambling Commission conducted a fair and rigorous competition to award the Fourth National Lottery License, and none of the disputed changes to the license during its implementation were significant or in violation of relevant procurement rules.

“The judgment provides strong backing for Good Causes by allowing Allwyn, under the Commission’s supervision, to proceed with its investment plans for The National Lottery without further interruptions. Our main focus continues to be regulating The National Lottery in the best interests of players and Good Causes.

“The National Lottery is among the world’s biggest lotteries, and since its launch in 1994, players have together raised over £52 billion for more than 670,000 Good Causes across the UK, changing lives and supporting the arts, sport, heritage and local communities.

Allwyn stated in a release: “The Gambling Commission held a fair and legal license competition, correctly granting the Fourth National Lottery License to Allwyn.”

The company characterized the ruling as a “clear and thorough judgment” that offers certainty for its management of the Lottery until 2034. Allwyn also said it is now concentrating on innovation and increasing funding for good causes, adding that the decision puts an end to “a long-standing series of claims” regarding the competition’s fairness.