Court of Appeal refuses TNLC challenge over National Lottery licence

The Court of Appeal has refused The New Lottery Company Limited and Northern & Shell permission to appeal part of April’s High Court ruling concerning the competition for the fourth National Lottery licence. All three proposed grounds were dismissed, leaving intact a decision that rejected every claim brought against the Gambling Commission.

The dispute covered both the original competition, won by Allwyn UK, and later modifications to the Commission’s agreement with the operator. Allwyn began running the National Lottery in February 2024.

All three proposed appeal grounds dismissed

Lord Justice Coulson rejected all three grounds submitted by TNLC and Northern & Shell in their application for permission to appeal.

According to the Gambling Commission’s account of the decision, TNLC sought to introduce a new legal argument at the appeal stage. Coulson LJ concluded that it should not be allowed to do so, particularly because the argument reflected a position that had been expressly ruled out during the High Court proceedings.

The judge also considered TNLC’s prospects under a less demanding standard of proof. The Commission said he regarded its chance of succeeding as “vanishingly small” and noted that TNLC had suffered no loss in practical terms.

The refusal concerns TNLC’s ability to appeal part of the April ruling. It does not replace that judgment; instead, it leaves the High Court’s findings against the companies undisturbed.

High Court rejected licence competition claims

The underlying judgment was delivered by Mrs Justice Joanna Smith on 17 April 2026. It dismissed the claims TNLC and Northern & Shell had brought against the Gambling Commission in relation to the award and implementation of the fourth licence.

Those proceedings challenged aspects of the competition that resulted in Allwyn being selected, as well as subsequent modifications to the agreement between the regulator and the successful bidder.

Allwyn was named the preferred applicant in March 2022 following a competition involving four prospective operators. The licence was formally awarded later that year before Allwyn replaced Camelot as operator on 1 February 2024.

The current licence runs for ten years, until January 2034. It introduced a more outcomes-based regulatory model and an incentive mechanism designed to connect the operator’s profits more closely with returns to good causes.

Commission welcomes end of latest challenge

The Gambling Commission welcomed the Court of Appeal’s refusal. It maintained that the licence competition had been fair and robust and said the contested changes made during implementation were neither substantial nor contrary to the applicable procurement regulations.

“The decision gives resounding support to Good Causes.” - A Commission spokesperson

The regulator said the ruling would allow Allwyn to continue its investment plans without the continuing distraction created by the appeal application. Its oversight of the operator and the implementation of the fourth licence will continue.

The outcome is therefore significant beyond the dispute between the parties. Allwyn is already more than two years into the licence period, and the Commission has presented continuity in its investment programme as important to the National Lottery’s future performance.

Good-cause returns remain central

The Commission said its priority remains regulating the National Lottery for the benefit of both participants and good causes.

Since the first draw in 1994, National Lottery players have raised more than £53 billion for over 680,000 projects and organisations across the UK. Funding has supported areas including arts, sport, heritage and local communities.

Good-cause returns were also central to the design of the fourth licence. Allwyn committed to investing in the lottery’s products and sales channels, with the aim of supporting growth while maintaining protections for players and the propriety of the National Lottery.

The Court of Appeal’s decision removes TNLC’s proposed challenge to part of April’s ruling. For the Commission and Allwyn, the immediate focus now returns to delivering the licence and the investment plans attached to it.