UK National Lottery Technology Revamp Faces Further Delays
Allwyn, the Czech gambling operator, has long delays to its plans to overhaul the technology behind the UK National Lottery. Originally set to transform the lottery infrastructure when it took over from Camelot on February 1, 2023, the company now wants to do so by February 2025, according to The Telegraph. But sources say the timeline may stretch into the summer – or even later.
Legal and Technical Issues
The transition got off to a slow start due to a legal challenge by Camelot’s former tech provider, IGT, to the Gambling Commission’s tender decision. Although that legal dispute was resolved with a tech partnership between Allwyn and IGT, the delays have continued.
It’s been described as like trying to put a Microsoft system on top of an Apple computer. That’s the complexity Allwyn faces in implementing the fancy systems it promised to bring in over the decade-long licence.
Questions Over Fundraising for Good Causes
The delay has raised doubts over Allwyn’s ability to meet its big promise to double the amount raised for good causes from £17 billion to £38 billion over the licence term. Insiders say Allwyn will miss the targets in the first two years but will catch up later.
This could blow Allwyn’s fundraising targets out of the water, which were a big part of its winning licence bid. Any further delay will come under intense scrutiny from regulators and the public given the importance of lottery funding for charities across the UK.
Retail and Product Development
Despite the issues, Allwyn has made some progress in expanding the lottery’s footprint and product range. Key milestones in the company’s first 10 months:
- Started revamping 40,000 retail outlets.
- Launched campaigns for new products Paris 2024, Lotto and Set For Life.
- Introduced a scratchcard purchase limit to promote responsible play.
These are all part of Allwyn’s efforts to modernise the lottery for players while the bigger tech overhaul faces issues.
Financials
Allwyn International’s Q2 results were mixed. Revenue was up 5% to €2.15 billion driven by strong growth in its core markets – Greece (OPAP), Czech Republic (Sazka), Austria (Casinos Austria). Adjusted EBITDA was down 11% to €340 million mainly due to the initial costs of running the UK National Lottery. Excluding the UK, EBITDA was up 4%.
As part of its international expansion, Allwyn has rebranded its HQ, moving from Prague to Switzerland and changing its name to Allwyn International AG.
