Call for Competition for the 4th UK National Lottery Licence

Contracts

• Call for Competition for the 4th UK National Lottery Licence · Allwyn Entertainment Ltd

  Signed

  15 Sept 2022

  Value

  £7,933,000,000

  Status

  active

  • Change The Enabling Agreement and draft Licence (annexed thereto) (copies are of which are available at : https://www.gamblingcommission.gov.uk/documentation-regarding-the-fourth-national-lottery-licence-jan-2024) were modified in September 2022, September 2023 and December 2023 to take account of delays to implementation of Allwyn's solution. The main modifications were (a) extending Key Dates, (b) providing for the application to be partially implemented at the Start Date (1 February 2024), namely the provision of Initial Functionality (being an enhanced provision of the existing service) and then the achievement of Full Implementation by 29 September 2024, with a fall back date of 28 February 2025 (which was agreed to be the applicable date in October 2023), (c) including a cap on the amount of additional costs incurred by the Commission which Allwyn is required to reimburse to Good Causes as a result of implementation continuing after 1 February 2024, based on the realistic maximum assessment by the Commission and (d) building in a process for the Commission to consider extending the term for up to 2 years (24 months) following a review, no earlier than Licence Year 5, provided that the extension is not inconsistent with the Commission's statutory duties. The Enabling Agreement was further modified to include provisions dealing with sanctions, namely requiring Allwyn not to enter into, and to do everything it can to ensure others (in particular, shareholders and subcontractors) do not enter into, any arrangement prohibited by or in breach of sanctions, together with obligations to notify the Commission of any such arrangements, promptly terminate such arrangements and implement appropriate policies and procedures with respect to monitoring arrangements with respect to sanctions., Need for modification brought about by circumstances which a diligent contracting authority/entity could not foresee: The modifications at (a) - (d) were necessary due to delay in implementation of Allwyn's solution which was primarily caused by litigation by the incumbent licensee (Camelot) and its subcontractor (IGT) (resulting in the loss of Allwyn's 3 month contingency period and a shorter implementation period than envisaged in the Competition) and/or by protracted and challenging negotiations regarding handover from IGT to Allwyn. The sanctions modification was caused by the invasion of Ukraine by Russia and sanctions imposed by the UK and other Governments. It was unforeseeable that IGT, a subcontractor to the incumbent, would start proceedings against the Commission in circumstances in which subcontractors do not have a cause of action under the Regulations, that IGT would continue proceedings once Camelot withdrew its proceedings on 16 February 2023 and/or that negotiations with IGT would be so protracted and challenging in circumstances in which, in addition to its existing subcontract, IGT had undertaken to the Commission in July 2021 to enter into good faith negotiations with the incoming licensee with a view to agreeing transitional services, software and support during the transition phase and for up to 2 years thereafter and its reasonable fees and costs. The invasion of Ukraine and the significant sanctions imposed were unforeseeable. In any event, the above modifications were not substantial.