Saturday, October 1, 2022
spot_img

Camelot Says It Will Go Bankrupt if National Lottery License Goes to Allwyn

Camelot, the current operator of Britain’s National Lottery is concerned about losing the license bid to Allwyn. Devastated by its loss, the former company presented its case to the court, claiming that the United Kingdom’s Gambling Commission has been unfair. During one of the latest days of the trial, Camelot claimed that losing the lottery license to Allwyn means it might go bankrupt.

Allwyn’s Victory Spells Camelot’s Doom, the Latter Claims

If Allwyn, which won the bid, successfully becomes operator of Britain’s National Lottery, Camelot may lose its business. This is what the latter company claimed during one of the latest hearings, the Daily Mail reported.

Since Camelot has held the license since the lottery’s very inception, it fears that once it loses its monopoly, it will go bankrupt. The company has argued that its Czech competitor the UKGC has unfairly picked Allwyn. Once it takes over, Camelot will no longer exist, the current National Lottery operator said.

Queen’s Counsel Sarah Hannaford blasted Camelot’s argument, saying that it should have been aware of the possibility of one day losing its license. Furthermore, Camelot is registered as a special vehicle company and its license has always been at risk.

Hannaford explained that as an SVP, Camelot can only run the UK National Lottery and ancillary activities. However, she added that it is Camelot’s own fault for setting its business as an SVP. Therefore, the company should not present the possibility of losing its business as an argument.

 “Setting yourself up as an SPV and then saying there is an existential threat simply does not work as a matter of law in my submission. Camelot UK took a decision to operate as they did and it was perfectly foreseeable that they might lose a contract.”

The Battle for Britain’s National Lottery Continues

Additionally, Camelot hasn’t provided convincing evidence that losing the license will lead to a shutdown of the company. The operator has the backing of International Game Technology, one of the biggest suppliers in the world. In fact, IGT launched a lawsuit on its own, condemning the UKGC for choosing Allwyn over Camelot. Despite IGT’s disgruntlement, Hannaford said that its global business is unlikely to be disturbed by the transition.

The Commission appealed to the court, asking it to lift the block that stops it from giving out the license. The authority argued that each second it loses to trials damages its funding for good causes. However, analysts have critiqued UKGC’s hasty approach as it might lead to even more damage.

On a separate note, some people remain skeptical of the Czech company because of its alleged ties with Russia. Kamel Komarek, Allwyn’s owner, said that using the war in Ukraine to discredit Allwyn is distasteful.

Related Articles

- Advertisement -spot_img

Latest Articles