Good causes could lose £1bn as Camelot sues over ‘unlawful’ national lottery licence

theguardian.com:

More than £1bn for good causes could be lost over a legal action alleging the new licence to run the national lottery was awarded unlawfully, according to court filings seen by the Observer.

Camelot, which operated the national lottery for nearly three decades, is seeking to reverse the decision to hand the licence to its rival Allwyn. It will go to court later this month in an appeal to delay the handover of the £6.4bn contract. The case threatens to embroil the lottery in its biggest controversy since it was launched in 1994 – and there is even a risk the lottery will be suspended for the first time in its history.

The Gambling Commission warns in a legal submission obtained by the Observer: “In the worst scenario, there will be a gap in service between the expiry of the third licence on 31 January 2024 and the commencement of the fourth licence. The commission anticipates there will be an overall shortfall of payment to good causes of at least £1bn and, in the case of an interregnum, considerably more.’

The lottery raised about £1.9bn for good causes in 2020-21. The money raised is donated by 12 distributors, including UK Sport, which invests funds to maximise performance of UK athletes in the Olympic and Paralympic games; the National Lottery Heritage Fund; and the National Lottery Community Fund, which provides money for food banks.

Kevin Brennan, the Labour MP and a member of the Commons select committee for digital, culture, media and sport, said: “Any delay in the handover of the lottery that denies money going to good causes would be a disaster, particularly at a time when people are facing increasing hardship.

“It would be better for everyone if this matter was resolved quickly and the new lottery operator takes