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Camelot is reportedly set to launch a High Court challenge over claims the UK's gambling regulator broke the law when it changed the scoring system in deciding who should win the new National Lottery licence.
The Sunday Telegraph reported that Camelot will this week apply for a judicial review as well as a High Court procurement challenge.
The incumbent National Lottery operator will issue legal proceedings against the Gambling Commission over the way it awarded a firm owned by Czech billionaire Karel Komárek the lucrative contract to run the National Lottery, it was claimed.
It said Camelot would allege that it came out top of the original scoring method, before coming behind Komarek’s Allwyn bid when the system was changed.
The central issue is understood to be a "risk factor" discount of up to 15 percent that was due to be applied to financial projections by the bidders.
Camelot is expected to claim that a discount was initially applied by the regulator, but later changed to zero in the final adjudication.
The decision was crucial because the financial projections lodged by Allwyn projected raising £38bn for good causes, far more than projected by Camelot.
In February, the Gambling Commission denied media reports that it had already recommended to the UK government that operator Camelot should be awarded the ongoing national lottery tender.
The fact legal action is being taken is not hugely surprising — in fact one source said earlier this year that “everyone expects a judicial review”.
However, part of the reason the Gambling Commission decided to score contenders on the various areas of their bid was to try to limit any legal challenge against the decision by losing bidders.
Allwyn — fearing it had lost the bid — reportedly had filed its own legal proceedings against the Gambling Commission days before it was unveiled as "preferred bidder". It will be unable to sign the contract to run the lottery while action is ongoing.
A spokesman for Camelot declined to comment.
Meanwhile, gambling minister Chris Philp is seeking fresh assurances from the Gambling Commission about Komárek's business ties to Russian energy giant Gazprom, the Kremlin-controlled gas producer.
In response to a question from Labour shadow minister Alex Davies- Jones over concerns linking the firm to Gazprom, Philp said: "I have asked the commission to assure me that it has conducted thorough inquiries to establish that the provisional licence awardee meets the test, and it has given me that assurance. There are also arrangements for the proposed licence holder to undergo the UK secure vetting process, and that work will begin shortly."
Komárek, who has an estimated net worth of $7.8bn (£5.9bn), operates a vast gas storage facility in the Czech Republic in a joint venture with Gazprom. He is in talks with the Czech government to oust Gazprom and has denounced "the barbarism of Vladimir Putin's regime".
Last week, Camelot was fined £3.15m after it sent marketing messages to thousands of at-risk players, among other problems linked to its mobile app.
