By Leah Montebello
Legal action could drain over £1bn from the National Lottery good causes fund as the battle over the lucrative comes to a head this month.
Camelot, which is owned by Ontario Teachers’ Pension Plan, has run the lottery since its inception in 1994, and has questioned the process behind the competition to win the licence, as well as Allwyn’s ambitious plans for the lottery moving forward.
According to court filings seen by the Observer, the Gambling Commission warned: “In the worst scenario, there will be a gap in service between the expiry of the third licence on 31 January 2024 and the commencement of the fourth licence.
The commission anticipates there will be an overall shortfall of payment to good causes of at least £1bn and, in the case of an interregnum, considerably more.”
Allwyn is due take over the licence from February 2024, but prolonged legal action could mean delays, and even suspension
Allwyn has said it will slash ticket prices from £2 to £1 and vowed to hike the amount of money going towards good causes and UK sporting activities.
Allwyn chief executive Robert Chvatal said last week in the firm’s financial results: “We look forward to the Court of Appeal hearing in September of the current operator’s appeal of the High Court’s decision to allow the license award to proceed and the formal transition period to begin.”
The hearing is expected on 13 and 14 September.
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