The UK Gambling Commission (UKGC) is seeking mediation with Northern & Shell to settle a £200 million ($153 million) lawsuit over the National Lottery contract. The lawsuit was filed by billionaire Richard Desmond's company after losing the £80 billion ($101 billion) tender to Czech operator Allwyn.

Northern & Shell claims the UKGC's bidding process contained errors that negatively impacted its scoring. The dispute has contributed to delays in Allwyn's technology platform upgrade, which is crucial for meeting charitable contribution targets.

Allwyn's commitment to double charitable contributions from £17 billion to £34 billion over its 10-year contract period was a key factor in winning the tender. The technology upgrade, originally planned for February 2024, has been postponed multiple times and may be delayed until summer.

The UKGC is reluctant to grant further extensions while the lawsuit remains unresolved, as it could strengthen arguments against Allwyn's selection. Desmond, who has operated the Health Lottery since 2011, has questioned the fairness of the selection 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. Camelot withdrew its lawsuit following Allwyn's acquisition of the company in February 2023, while IGT's case was dismissed for lack of standing.

The UKGC maintains it conducted a "fair and robust competition" for the lottery contract. The regulator's move toward mediation reflects growing concerns about the impact of continued legal disputes on the National Lottery's operational efficiency and charitable objectives.

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