UK national lottery provider loses case against rival

The UK national lottery operator Camelot will be licking its wounds today after losing its High Court attempt to shut down competitor Health Lottery, a rival started by media entrepreneur Richard Desmond.

Certainly Camelot did not appear happy with the decision, saying it would launch an appeal, and calling on the British government to close a loophole in the 2005 Gambling Act that has allowed the Health Lottery, launched last October, to gain an operating licence.

By organising the Health Lottery into 51 community interest entities, Desmond created a situation that by-passed regulations permitting only one lottery to operate nationally.

Camelot went to the courts in March this year seeking a judicial review and the revocation of the Health Lotteries licence by the UK Gambling Commission, culminating in this week’s court finding that there are no grounds for such a review or a revocation

It wasn’t all good news for the Health Lottery this week, however; it ran afoul of the Advertising Standards Authority with one of its television ads after complainants alleged they were misled by the content regarding the size and frequency of jackpots.

Following a review, the ASA ruled that the ad breached BCAP Code rules 3.1 and 3.2 and forbade its further use in its current form.