The UK Gambling Commission (UKGC) is preparing to pay up to £200 million as settlement to a lawsuit by media mogul Richard Desmond’s Northern & Shell PLC against the regulator. 

According to reports in the Daily Telegraph, the regulator is meeting with Desmond’s Northern & Shell for settlement of the ongoing legal dispute over the bidding process to run the National Lottery.

Suit against UKGC

Northern & Shell initiated the challenge earlier this year after the gambling commission crowned Allwyn as the next National Lottery Operator. Allwyn replaced Camelot to run the National Lottery and was awarded a 10-year licence by the UKGC.

The publishing group, which was among the bidders, has filed the claim implying that the procurement process in 2022 was controversial. This comes as Allwyn faces challenges regarding its technological upgrade, which has caused it to miss its target deadlines several times.

Northern & Shell claimed that the UKGC mishandled the bidding process. The company insisted that the bidding hurt its business two years later and sought £200 million in damages. Other bidders have laid out similar challenges on the commission before.

This has led to concerns about Allwyn being inexperienced to be UK National Lottery and Northern & Shell’s claim that it is not a suitable successor to Camelot.

Camelot, which ran the Lotto since its launch in 1994, also took the GC and Allwyn to court. Camelot alleged misdemeanours following Allwyn’s victory. However, Allwyn bought the operator from its owner, the Ontario Teachers’ Pension Fund in Canada.

Northern & Shell has been a more persistent opponent to Allwyn, calling the recent bidding protest “seriously flawed” and stressing that the company has “no experience in the UK”.

Desmond sought £200 million in damages, but the UKGC proposed a mediation meeting with Northern & Shell to resolve the suit through an out-of-court settlement.

However, the report indicates that the final settlement figure may be lower than what Desmond sought.

Allwyn’s tenure so far

Allwyn’s operation as the new National Lottery Operator has been controversial throughout. It comes as the company has so far struggled to prove that it would be able to fulfill its promise to double the lottery’s contributions to good causes.

For three decades, Camelot was the National Lottery Operator and helped raise billions to charitable causes. Allwyn claimed that it would more than double the proceeds to good causes from nearly £18 billion to £38 billion after winning the licence for the National Lottery.

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