UK taxpayers could foot potential £600m Camelot damages award
Revelation comes as Gambling Minister Chris Philp concedes National Lottery Good Causes fund could also cover the costs
UK taxpayers or the National Lottery Good Causes fund could be handed a £600m bill to cover any potential damages awarded to Camelot regarding its ongoing legal challenge against the UK Gambling Commission (UKGC).
The revelation came to light from Gambling Minister Chris Philp, who took part in the latest DCMS Select Committee into the future of the National Lottery.
When pressed on how a potential £600m pay-out would be funded, Philp conceded UK taxpayers or the fund allocated for good causes could be two sources to bear the brunt.
Philp said: “We hope very fervently that that eventuality will not arise. We’re obviously disappointed that Camelot are choosing to pursue this litigation.
“They’ve had the licence for 28 years now, which is an extremely long period of time, nearly three decades, so to litigate is disappointing.
“There are clearly a number of ways damages could be funded if they’re awarded. One is it could come out of good causes, another of course is that it could be funded by the Treasury,” he added.
Philp confirmed that no discussion had been held with the Treasury regarding the claim.
Camelot, along with its technology partner IGT, is pursuing damages against the UKGC relating to the regulator’s decision to award Allwyn the fourth National Lottery licence, which will run from 2024 for 10 years.
Camelot’s claim alleges the UKGC failed to “correctly and lawfully apply” published evaluation methods or applied an unpublished evaluation method across three key metrics in Allwyn’s proposal.
These metrics were the risk factors in Allwyn’s application, the group’s portfolio and transition business plans, and the Czech-owned operator’s branding business plan.
High Court proceedings are set to resume in October.
Philp said the UKGC had assured him the procedure to award Allwyn the licence was done legally and properly, as he doubled down on his disappointment with the incumbent licence holder, Camelot.
He said: “I’ve been given every assurance by the Gambling Commission that this process was run properly and it was run fairly.
“They were supported by very credible professional advisors from the legal and the financial services sector as they ran the process. I don’t think that this litigation serves anyone’s interests and I am extremely disappointed that it’s happening.”
Camelot, which employs 1,000 people in Watford, said it returned £45bn to 660,000 causes in the UK since it began running the National Lottery in 1994.
It is understood that Allwyn promised to outdo Camelot by directing more than £30bn to good causes during the course of the 10-year licence.