Lawyers for Camelot asked a High Court judge yesterday to revoke the Commission ruling to enter exclusive talks with People’s Lottery consortium led by Sir Richard Branson and supported by KPMG.
The incumbent operator is seeking a judicial review of the regulator’s decision last month to reject both bids, but allow the People’s Lottery a month to improve its bid.
The Lottery Commission said it had based its decision to disallow Camelot from entering the second round of talks because of its concerns over Gtech’s ability following a software fault. The fault, which led to underpayments on winnings, was covered up by the US software supplier, Gtech.
Camelot wants a declaration that the decision is unlawful, and an injunction to restrain the Commission from granting a new licence until Camelot has had a fair opportunity to improve its bid.