Camelot challenges Gambling Commission over National Lottery’s contract
Camelot is expected to challenge the Gambling Commission over the regulator’s decision to award the National Lottery contract to multinational Allwyn.
The group will take the gambling regulator to court, accusing the Gambling Commission of breaking the law when it discarded Camelot’s score in the system that measures the bids, the Telegraph reported.
According to the former National Lottery’s operator, Camelot had a 15 per cent “risk factor” discount that was supposed to be appleid to bidders’ financial forecasts, which was first applied and then discounted by the Gambling Commission.
The change in rules turned Allwyn’s projections for good causes to be significantly higher than Camelot’s, allowing Allwyn’s boss Czech billionaire Karel Komarek to snatch up the deal.
“I am confident that the success of the competition will lead to a highly successful fourth licence – one that maximises returns to good causes, promotes innovation, delivers against our statutory duties, and which ultimately protects the unique status of the National Lottery,” said Gambling Commission’s boss Andrew Rhodes.
Despite Camelot’s legal challenges, the rest of the industry appeared satisfied with the Allwyn’s appointment, with the director of Clean Up Gambling Matt Zarb-Cousin saying the decision “signals a change” for the wider industry.
“Camelot’s tenure saw the lottery increasingly associated with the wider gambling sector, due to the rise of online instant win games more reminiscent of casino and slot products than a lottery draw”, he told City A.M.
“While this might have been good for Camelot’s profits, it meant a lower proportion of total revenue going to good causes”.