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 litigation is now causing concerns about Allwyn's ability to implement crucial technology upgrades, which are essential for meeting charitable contribution commitments.

The tech platform upgrade, initially planned for February 2024, has faced multiple delays. Allwyn has set a new target for February 2025, though sources suggest it might extend to summer. These delays could affect Allwyn's pledge to double lottery charitable contributions from £17 billion to £34 billion over their 10-year contract period.

Previous legal challenges from Camelot and IGT have already impacted the transition. While Camelot withdrew its lawsuit following Allwyn's acquisition of the company, and IGT's case was dismissed, the ongoing Northern & Shell dispute continues to create uncertainty.

Desmond, who has operated the Health Lottery since 2011, questions Allwyn's UK market experience, stating, "They have no experience in the UK. We've been going since 1975, deemed fit and proper, started magazines, the Health Lottery, Channel 5."

The UKGC maintains it conducted a "fair and robust competition" for the lottery contract but is now prioritizing resolution through mediation to prevent further delays in implementing the necessary technological improvements.

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