Published on: November 29, 2024, 07:57h.
Last updated on: November 29, 2024, 07:57h.
UK gambling regulator, UKGC, seeks to resolve a £200 million lawsuit by a losing bidder in the £80 billion (US$101 billion) lottery tender in the country.
The agency has requested a mediation meeting with Northern & Shell, owned by Richard Desmond, to settle the dispute, according to The Daily Telegraph.
Northern & Shell filed a lawsuit against the regulator after the lottery contract was awarded to Allwyn (formerly Sazka), seeking £200 million ($US153 billion) in damages.
The UK lottery is a significant public sector contract, and Northern & Shell alleges that UKGC’s handling of the bidding process led to errors affecting its score.
Technological Challenges
The mediation effort comes as concerns rise over legal disputes affecting Allwyn’s tech platform upgrade, potentially hindering its commitment to charitable causes.
Delays in the tech upgrade have been linked to litigation from losing bidders. Previous operator Camelot and tech partner IGT separately sued UKGC following the tender result.
Camelot withdrew its lawsuit after Allwyn acquired the company, while the IGT suit was dismissed for lack of standing.
Allwyn aims to double the lottery’s charitable contributions from £17 billion (US$24 billion) to £34 billion (US$43 billion) during its ten-year tenure. Increasing funds for good causes was a key factor in Allwyn winning the contract.
The tech upgrade was expected to be completed by February when Allwyn took over from Camelot, but delays have pushed the deadline to next February, per Daily Telegraph sources.
Challenges Ahead
A possible further deadline extension for the tech upgrade to summer raises concerns, especially with the Northern & Shell case unresolved, potentially impacting Allwyn’s suitability for the job.
In a previous interview, Desmond criticized the bidding process, questioning Allwyn’s experience in the UK compared to his company’s longstanding presence in various industries.
He stated, “They [Allwyn] have no experience in the UK. We’ve been operating since 1975, deemed fit and proper, started magazines, the Health Lottery, Channel 5.”
UKGC maintains it conducted a fair competition for the lottery contract.