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The National Lottery could be suspended for the first time in 30 years (Image: Getty)
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The Gambling Commission has reportedly warned that delays to the transfer process could disrupt the lottery and deprive players and good causes of millions of pounds.
Czech-owned operator Allwyn was named as the preferred applicant for the fourth licence in March, which would allow it to run the game from 2024.
But preparations to transfer the licence were barred from moving forward following a legal challenge by Camelot, the current lottery operator since 1994.
The Gambling Commission is seeking to reverse the suspension. daniel craig casino royale
In evidence to the High Court, seen by The Telegraph, the Commission’s executive director John Tanner reportedly said both it and Allwyn would “suffer significant prejudice in being unable to commence important steps towards commencement of the fourth licence” while they are prevented from entering into an “enabling agreement”.
He went on: “This will almost certainly mean that, as a minimum, the National Lottery does not operate to its full potential at the start of the fourth licence term.”
“Further, there is a real risk in these circumstances that there will, following the end of the third licence, be a period where the National Lottery does not operate at all.”
Delays could also mean that players miss out on claiming winnings and good causes are deprived of vital cash, it was said.
The National Lottery has raised more than £45 billion for 660,000 good causes since its launch almost three decades ago.
These include charities and projects contributing to the arts, sport, heritage and communities.
Mr Tanner added: “There would be no contributions to Good Causes during any period where the National Lottery is not operating.”
“The interests of participants would be jeopardised in that winners in National Lottery games under the Third Licence [held by Camelot] may be unable, after the expiry of that licence, to claim prizes.”
In its submission to the court, Camelot warned that the transfer of the lottery licence to Allqyn “would effectively put [Camelot] out of business”.
A Camelot spokesman told The Telegraph: “We have made clear in our representations to the Court that we believe there is no threat of suspension of the National Lottery in the period between the third and fourth licences.”
“Camelot has proposed a number of possible solutions to the Court – including an interim licence which has already been used in similar circumstances – which remove any such risk.”
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