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An automatic suspension on the handing over of the National Lottery Licence was put into effect on July 14, after a UK court granted Camelot and IGT permission to appeal.
The appeal process will generate challenges for the transition to the fourth licence and further delay the award of the licence to Allwyn.
The appeal hearing is likely to take place in the week of September 12, according to the Gambling Commission.
“Throughout the litigation process, we have been clear that disrupting the implementation of Allwyn’s plans would present potentially severe consequences for the National Lottery and good causes. It also risks the National Lottery not operating to its full potential at the start of the fourth licence,” the Gambling Commission said.
The permission to appeal the Gambling Commission’s decision to grant the fourth National Lottery licence to Allwyn Entertainment UK (Allwyn) is a blow to the regulator’s plans for a seamless transition to the new operator.
On June 29, the High Court lifted an automatic suspension that prevented the Gambling Commission from formally awarding the licence, a move which seemed to allow Allwyn to begin preparing to take over one of the world’s largest lotteries.
However, now the regulator has been left “disappointed” after what is called a “highly successful competition” for the fourth National Lottery licence.
The legal challenge “could impact the transition to the Fourth Licence and, ultimately, funding for good causes”, according to the regulator.
“Nevertheless, it remains our priority to ensure a seamless transition between the third and fourth National Lottery licences, so that players can continue to enjoy playing the National Lottery fairly, safely and claim their prizes, and so that the National Lottery continues to deliver for good causes in every corner of the UK,” the Gambling Commission said.
To protect the integrity of the process, the regulator is not able to discuss the specifics until litigation has concluded.
Recently, members of the UK government warned that if Camelot is successful in its legal challenge, and wins a potential £600m in damages, the Treasury could be forced to foot the bill, limiting the amount of money available from the lottery to good causes.