The UK Gambling Commission (UKGC) is seeking mediation to resolve a £200 million ($153 billion) lawsuit filed by Northern & Shell, owned by billionaire Richard Desmond, over the national lottery contract.

The lawsuit stems from the UKGC's decision to award the £80 billion ($101 billion) lottery contract to Czech operator Allwyn (formerly Sazka). Northern & Shell claims the bidding process contained errors that negatively impacted their scoring.

This legal dispute is causing complications for Allwyn's technology platform upgrade, which is crucial for meeting their commitment to double charitable contributions from £17 billion to £34 billion over their 10-year contract period. The upgrade, originally planned for February 2024, has faced multiple delays and is now targeting a new deadline of February 2025, with possible extension to summer.

The UKGC is reluctant to grant additional extensions while the lawsuit remains unresolved, as it could strengthen arguments against Allwyn's selection. Desmond, who has operated the Health Lottery since 2011, questions the fairness of the process, citing his company's extensive UK experience compared to Allwyn's lack thereof.

Previous legal challenges from former operator Camelot and tech partner IGT have already been resolved, with Camelot dropping their suit following Allwyn's acquisition of the company, and IGT's case being dismissed for lack of standing.

The UKGC maintains that it conducted a "fair and robust competition" for the lottery contract, though the move toward mediation suggests a willingness to address Northern & Shell's concerns outside of court.

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