Delays in litigation are reportedly leading to an alleged enforcement issue for Allwyn with the UK Gambling Commission.
The UK's National Lottery, under its new operator Allwyn, is facing delays and legal challenges that have hindered its full implementation. Allwyn secured the licence to operate the National Lottery in September 2022, with the transition planned to begin on February 1, 2024. However, the awarding process was controversial, leading to legal challenges from long-time former operator Camelot and third-party Northern & Shell.
Camelot Entities withdrew their legal challenge, allowing the UK Gambling Commission (UKGC) to move forward with Allwyn’s licence award. Yet, litigation persists involving Northern & Shell, which is pursuing a £200 million lawsuit against the UKGC over the licence allocation.
These legal proceedings have caused delays, leading to UKGC enforcement action against Allwyn for failing to deliver full functionality of the National Lottery by a contractual deadline in February 2025. A £1.3 billion legal challenge is scheduled for October 2025, with full disclosure of evidence related to the National Lottery operations.
The UK Gambling Commission is actively pursuing disciplinary proceedings and enforcement actions against Allwyn due to these delays, which have impacted the full implementation of the licence. Meanwhile, Allwyn currently operates the National Lottery and emphasizes plans to revitalize it, including enhanced digital transformation and increased funding to good causes.
Despite the legal uncertainty, Allwyn has invested £400m into the lottery since winning the award, significantly more than Camelot's £72m investment in the five-year period to 31 January 2024. Allwyn was named as the new National Lottery operator, replacing Camelot, which had run it since 1994.
The matter remains "sub judice" and is scheduled for further court hearings in October 2025. The first stage of the technical transition, one of the largest ever attempted globally by a lottery operator, is planned to take place this weekend. Ongoing delays to digital upgrades in relation to the National Lottery continue to cause concern.
In addition, an extension was agreed with tech partner IGT, allowing it to continue providing platform support for the lottery until 2025. The lawsuit involving IGT lasted for an additional 15 months, ending late in 2023. Although Allwyn is not directly involved in that suit, it is considered an interested party.
The delay in the technical cutover has caused Allwyn to miss its legally committed delivery date of February 2025. The National Lottery is likely to miss its fundraising targets due to these delays. The Gambling Commission is concerned about missed contractual milestones by Allwyn.
The sole remaining lawsuit related to the tender is Richard Desmond's Northern & Shell's suit against the regulator, which has not been settled despite a £10m offer by the Commission in 2024. The unsuccessful bidder is seeking up to £1.3bn in damages and the case is now set for trial.
These ongoing legal battles and delays are significant and are expected to continue impacting the National Lottery's operations and fundraising targets in the near future.
- The delay in the technical transition for the National Lottery, a significant undertaking by Allwyn, has caused Allwyn to miss its legally committed delivery date of February 2025.
- The Gambling Commission is concerned about missed contractual milestones by Allwyn, which might lead the National Lottery to miss its fundraising targets.
- Allwyn, the new operator of the National Lottery, is currently operating the platform while facing a £1.3 billion legal challenge scheduled for October 2025, which involves the operations of the National Lottery.
- Despite the ongoing legal battles and delays, Allwyn has significantly invested more in the National Lottery since winning the award, as compared to Camelot's investment in the same period.
