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Incumbent lottery operator Camelot has dropped its legal challenge against the Gambling Commission’s decision to award the UK’s next National Lottery licence to Czech operator Allwyn.

Allwyn, in turn, has agreed to waive all claims for costs or damages against the Camelot Entities appeal.

“Allwyn very much welcomes this decision and looks forward to cooperating with Camelot and the Gambling Commission on the transition process,” Allwyn said in a statement.

However, not all obstacles for Allwyn have been cleared; a separate appeal launched by rival bidder and Camelot technology partner International Game Technology (IGT) against the decision is still pending.

In March, the UK Gambling Commission (UKGC) selected Allwyn as its preferred applicant for the fourth licence to operate the UK National Lottery following a tender process that began in 2020.

This marked the first time a new company had been selected to run the competition since its inception in 1994.

However, Camelot contested the UKGC’s decision, which resulted in a temporary automatic suspension of the UKGC’s ability to award the licence to Allwyn.

Gambling Commission: “We are not aware that IGT’s position has changed and therefore the IGT appeal and the suspension will continue until that is resolved.”

In June, the UK’s High Court lifted the automatic suspension. That ruling, however, was again appealed by Camelot and IGT, resulting in the suspension continuing.

The UKGC said it received correspondence from Camelot yesterday (5 September) indicating that “they intend to withdraw their appeal and pursue their claim in damages only”.

The UKGC further stated: “We are not aware that IGT’s position has changed and therefore the IGT appeal and the suspension will continue until that is resolved.

“Resolution of the appeal would allow us to proceed with the important work of formally awarding the licence to Allwyn.”

The UKGC added that it has run a fair and robust competition, and that its evaluation has been carried out fairly and lawfully in accordance with its statutory duties.