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Camelot has withdrawn its appeal against the transfer of the UK National Lottery licence to Allwyn, moving it one step closer to becoming the lottery operator from February 2024.

Allwyn was awarded the licence in March 2022 and on 29 June 2022, an automatic suspension preventing the UK Gambling Commission from entering into agreements with Allwyn Entertainment Ltd to commence the transition process was lifted. This ruling was appealed by Camelot UK Lotteries Limited and Camelot Global Lottery Solutions Limited and International Game Technology plc (IGT), resulting in the suspension continuing.

In a statement, the Gambling Commission announced that Camelot had decided to withdraw its appeal against the transfer of the UK National Lottery licence to Allwyn.

A Camelot spokesperson said: “It has become clear that the potential damages covered by the undertakings needed for the appeal to proceed would have been too large, and involved too great a commercial risk, for it to be reasonable to provide them.”

However, International Game Technology (IGT) has not withdrawn its appeal, according to the Gambling Commission. “We received correspondence from Camelot indicating that they intend to withdraw their appeal and pursue their claim in damages only. 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.

“Our priority is to continue to work to implement our decision and ensure a seamless and timely transition to the next licence, for the benefit of participants and good causes.

“We remain resolute that we have run a fair and robust competition, and that our evaluation has been carried out fairly and lawfully in accordance with our statutory duties.”

An Allwn spokesperson added: “Allwyn announced that the Camelot Entities have decided to withdraw the Camelot Appeal, and Allwyn Entertainment Ltd and Allwyn International A.S. have agreed to waive all claims for costs or damages against the Camelot Entities. Allwyn very much welcomes this decision and looks forward to cooperating with Camelot and the Gambling Commission on the transition process. Allwyn is excited at the prospect of becoming the custodian of Europe’s biggest lottery.”