UKGC Awards Allwyn National Lottery License
Allwyn has officially been awarded the fourth National Lottery license by UK regulator, the Gambling Commission. The move comes after Camelot dropped a legal challenge preventing the handover of the license. Allwyn will take over as the operator of the National Lottery in February 2024.
Allwyn can now officially begin the transition process ahead of the license handover in sixteen months. ©Alejandro Garay/Pixabay
License Transition Can Begin
European lottery giant Allwyn has been officially awarded the license to operate the National Lottery, following a bitter legal battle between Camelot and the Gambling Commission. When Allwyn takes on the fourth National Lottery license in February 2024, it will be the first gambling operator to take the title from Camelot.
Camelot has maintained a monopoly over the National Lottery since its launch in 1994. It saw off the opposition for three competitions, but the latest contest proved to be the final straw for the operator. After thirty years, the UK will see a new license-holder take charge of the lottery.
Allwyn has already promised to bring in some big changes to how the National Lottery is run, refreshing it for a new generation of players. It projects that it can double the amount of money that is allocated to good causes. Allwyn has also promised a cutting-edge technology platform and improvements to player protections.
Announcing the news that it has been officially named as the next lottery operator, Allwyn published a press release providing further details on how it plans to transform the National Lottery. Speaking on behalf of the lottery giant, Chairman Justin King was optimistic about the challenges that Allwyn will be taking on. According to King:
“Today’s award formally marks a fresh start for the National Lottery. We have exciting plans for this important and cherished institution, crucially raising even more proceeds for good causes across the country, improving the player experience through the latest technology and ensuring safe participation.”
Due to the legal challenges that followed the Gambling Commission’s decision to award the upcoming license to Allwyn last March, Allwyn has been left short on time when it comes to carrying out the transition. The Gambling Commission has previously stated that it needs at least two years to complete the process. It is now left with less than a year and half.
Legal Challenges
Camelot has now dropped its legal challenge against the Gambling Commission, which prevented the handover of the £6.4 billion contract. It launched that challenge in April, claiming that the regulator had acted unfairly over the course of the competition.
In particular, it referenced an incident in which the Commission allegedly changed the rules of the competition at short notice. Bidders were required to submit financial projections showing how the National Lottery would fare under their leadership. At first, applicants were told that a 15% risk factor discount would be applied to their projections.
However, the Commission later revised this down to zero. As a result, those who submitted more ambitious proposals benefitted. Allwyn projected that it would raise £38 billion for good causes, millions more than Camelot estimated. This scored Allwyn some big points and ultimately helped it to win over the judges.
The Gambling Commission has maintained its stance that the competition it carried out was fair and robust throughout. In July, Camelot and its technology provider IGT went to the Court of Appeal to ensure that the Commission’s suspension on awarding the license remained in place. Since then, the awarding process has been at a standstill.
Earlier this September, Camelot dropped its legal challenge. At the time, it was not clear whether IGT had also dropped its own challenge. Now that seems to be the case, as the Gambling Commission has been able to move forward with awarding the license. CEO of the Commission, Andrew Rhodes was pleased to have finally reached this outcome, stating:
“We are pleased to have officially awarded the fourth licence to Allwyn following a highly successful competition and the court’s decision to lift the suspension on the award process. We now look forward to working with all parties to ensure a smooth and efficient handover.”
Engaging with New Players
Formerly known as Sazka, Allwyn is a leading global lottery operator. It is responsible for some of the most popular lotteries across Europe, including in Austria, the Czech Republic, Greece, Cyprus and Italy. More than 79 million adults enjoy its products, helping Allwyn to generate annual sales of over €16 billion.
The operator is owned by Czech oil and gas magnate Karel Komárek, who is believed to be worth around $7 billion. The addition of the National Lottery will come as a great asset to Allwyn, as it is Europe’s biggest lottery. It has already raised more than £46 billion for good causes across the UK, as well as providing funding for Team GB’s Olympic and Paralympic athletes.
At £6.4 billion, the National Lottery contract is the UK’s most lucrative public sector contract. It has been estimated that the ten-year license could generate in the region of £80 billion to £100 billion in ticket sales. Allwyn is keen to maximize the lottery’s potential and get more people interested in participating.
One of the more unusual ideas that the operator is rumored to be exploring is introducing scratch cards that smell of chocolate. According to inside sources, it wants up to 70% of the population to buy scratch cards once a year. Allwyn already offers scratch-n-sniff cards in its other markets, and they have proved popular amongst players.
The operator has partnered with Scientific Games and Vodafone as it prepares for its license takeover. With just sixteen months left to finalize things, it has also set up an office in Watford to work close to the heart of the current operations. This should allow Allwyn and Camelot to collaborate and ensure a smooth transition.
