Lottery cash for good causes at risk from legal battle
‘Attempting to squeeze up to £600 million out of the public purse at this time is totally unacceptable’
LOTTERY money for good causes worth up to £600 million could be put at risk by legal action being mounted by one of the companies that lost the contract, the Government has warned.
The Department of Culture, Media and Sport said it was “disappointed” that the Italian partner company to Camelot was challenging its loss of the contract in the UK courts.
In a response to the Commons culture committee’s inquiry into the lottery, it said the action posed risks to “the National Lottery’s mission to fund good causes”.
MPS have warned that the compensation claim by the company International Game Technology (IGT) against the Gambling Commission, which awarded the contract, could cost good causes up to £600 million.
The firm had originally filed its claim under Article 1 of the European Convention on Human Rights, that the decision damaged its marketable value, but is now taking action under EU legislation still retained in UK law.
A group of 10 Tory MPS wrote to Michelle Donelan, the then culture secretary, urging her to intervene if IGT wins compensation over the case. In their letter, seen by The Daily Telegraph, the MPS said: “We realise this is a legal process which must be tested in the courts without political interference.
“But regardless of the strength or weakness of either side’s case, we are clear that attempting to squeeze up to £600 million out of the public purse at this time is totally unacceptable.
“Can you confirm, should legal proceedings determine that IGT should be awarded a financial sum in compensation, that this is not met by diverting funds away from National Lottery good causes, or i ndeed by any public money?”
Damien Moore, the MP who organised the letter, said: “One thing the cost of living crisis has reminded us is how precious public money is.
“So it’s a scandal, as the Government has agreed, that IGT is putting hundreds of millions of pounds of charitable money at risk, and indeed the future of the lottery.”