National Lottery operator Camelot has launched legal action against the Gambling Commission after it announced plans to transfer the licence to operate the game to a rival after 30 years.
Camelot, which is based in Tolpits Lane, is set to lose its licence to Czech-owned Allwyn in 2024.
The decision came after a bidding process between four parties for the licence, which Camelot has held since 1994.
According to court records, Camelot filed a High Court claim against the Gambling Commission on Thursday evening (March 31).
Camelot chief executive Nigel Railton said the company is bringing the legal action because it “firmly believes that the Gambling Commission has got this decision badly wrong”.
He added: “Despite lengthy correspondence, the commission has failed to provide a satisfactory response. We are therefore left with no choice but to ask the court to establish what happened.
“Irrespective of Camelot’s dual roles as current operator and applicant for the next National Lottery licence, the competition is one of the largest UK Government-sponsored procurements and the process deserves independent scrutiny.
“Separately, more than 1,000 Camelot employees work tirelessly to successfully operate the National Lottery under the current licence and, at the very least, they are owed a proper explanation.”
The Gambling Commission has said the selection “follows a fair, open and robust competition”.
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A statement on behalf of the body said: “We regret Camelot’s decision to bring legal proceedings following the outcome of a highly successful competition for the fourth National Lottery licence.
“The competition and our evaluation have been carried out fairly and lawfully in accordance with our statutory duties, and we are confident that a court would come to that conclusion.”
The board added its priority is to continue implementing its decision and “ensure a seamless and timely transition to the next licence”.
“These proceedings will not help that but we trust that Camelot will honour its obligations as the current licensee to co-operate in that transition, and we will continue to use the tools available to us to facilitate that process.”
Camelot has declined to say whether local jobs at Watford are at risk if it loses its licence.
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