IGT Drops Legal Challenge to Allwyn Winning UK National Lottery License
International Game Technology (IGT) has officially ended its legal challenge against Allwyn Entertainment UK Limited (Allwyn) being awarded the 4th UK National Lottery license. The legal battle began in July of 2022, when the UK Gambling Commission (UKGC) chose Allwyn as the successful bidder for the license. Initially, the Court of Appeal allowed IGT to challenge the decision, but in July 2023, it ruled that IGT did not have legal standing to claim damages against the regulator.
Despite making a plea against the decision in September, IGT has now decided to drop its appeal, signaling an end to its pursuit of compensation. The UKGC commented that it had conducted a fair and robust competition and was focused on implementing the decision for the benefit of participants and good causes, with the license set to be granted on February 1, 2024.
In addition to IGT, the Camelot Group also sought to challenge the decision, resulting in the suspension of the license issuance to Allwyn in April 2022. The High Court lifted the suspension in June 2022, but the legal challenge continued, with both IGT and Camelot approaching the Court of Appeal. However, Camelot ultimately dropped its legal bid in September 2022, and Allwyn agreed to relinquish any claims for damages or costs against the Group.
While Camelot and Allwyn were initially at odds, the two companies have grown closer since the end of the legal challenge. Camelot is set to step down as lottery operator and maintain connections to the games it has managed since the mid-1990s. Allwyn officially purchased Camelot UK and Camelot Lottery Solutions in February 2023, leading to a rebranding of the US-facing firm to Allwyn North America.
The acquisition had a significant impact on Allwyn’s financial performance, with a 98% increase in consolidated overall income and gross gaming income during the third quarter of the previous year. The UK now represents the primary market for Allwyn, with overall income in the UK reaching €956.5 million (£822.3 million/$1.05 billion) during the third quarter.