Doubt was cast over 900 Watford-based jobs after National Lottery operator Camelot dropped its appeal to prevent handing over its licence.

Czech-owned rival company Allwyn said that Camelot has withdrawn its legal challenge to an earlier court ruling which would have seen it go to the Court of Appeal this week.

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Earlier this year the UK Gambling Commission announced that Camelot, which is based in Watford, would lose the National Lottery in 2024 after 30 years.

Allwyn said the appeal withdrawal “removes an important obstacle to the UK Gambling Commission signing the enabling agreement with Allwyn that will allow the transition process to begin”.

Watford Observer: The National Lottery. Credit: PAThe National Lottery. Credit: PA (Image: Nigel Cox)

In return, the company has dropped its counter-claim against Camelot for damages due to delaying the transfer of the £6.4 billion contract.

Camelot has yet to speak out on whether Watford jobs could be affected by losing the licence, but it previously say it will “cease trading” if it loses the bidding rights.

The Watford Observer asked Camelot whether this latest development will impact local jobs. A spokesperson did not answer the question.

However in an updated story published on September 16, Allwyn has assured workers that their jobs are safe.

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However, it is understood that the company is pressing ahead with its main legal claim, with another trial set to go ahead in January or February.

The Camelot spokesperson said: “By pursuing the opportunity to be awarded the fourth licence, Camelot has sought to limit the risk that good causes or the exchequer would have to meet damages if the licence award was found by a court to have been unlawful.

“However, 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.”

It added the group “will now co-operate with Allwyn and the Gambling Commission to facilitate an orderly transition to the fourth licence” but is preparing for the main procurement trial early next year.

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