The company that is set to take over the fourth 10-year operating licence for the UK National Lottery – Allwyn – has agreed to purchase the incumbent NL operator Camelot. The deal is expected to make the handover of the operation permit easier and put an end to the legal proceedings over the procurement process.
The newly-announced deal is set to close early in 2023. It will be subject to approval from the country’s gambling regulatory body, the UK Gambling Commission (UKGC).
According to a person familiar with the situation, who asked not to be named, Allwyn used its Ontario Teachers’ Pension Plan, a business it owned for 12 years, to take over Camelot for approximately £100 million.
The Chief Executive Officer of Allwyn, Robert Chvátal, the takeover deal would only enhance the transition process and help support the operator in achieving its vision for the UK National Lottery, especially after the handover of the operating permit was delayed for a few months. Previously, the UK Gambling Commission had argued in court that the delayed licence handover could have an extremely negative impact on fundraising for good causes.
Camelot Acquisition Set to Close Early in 2023 after Receiving Regulatory Approval from the UKGC
As Casino Guardian reported, the Czech Republic-based company won the contract to operate the UK National Lottery for another 10 years in March 2023. The UKGC’s decision made Allwyn the first operator to replace Camelot’s tenure in the lottery’s 28-year history.
Unfortunately for the company, the licence handover process was put on hold because Camelot filed a lawsuit against the UK gambling regulator. Eventually, the legal challenge was dropped in September. In addition, Camelot UK had planned to pursue potential financial damages over the way in which the bidding process was handled by the UKGC in a High Court case scheduled for early in 2023. Now, with the Czech Republic-based gambling company taking over Camelot, the legal challenge of the former National Lottery licence holder is expected to be withdrawn after the acquisition takes place.
Camelot is set to be run separately, but the majority of the company’s employees were already set to transfer to the operator’s new owner, Allwyn, as part of the handover of the lottery operating permit. Camelot has not commented on the acquisition so far.
Mr Chvátal explained that the takeover deal would make sure that the National Lottery operations would be successfully delivered both in 2023 and after the planned takeover takes place in February 2024.
The National Lottery remains one of the most lucrative procurement contracts of the UK Government. The new 10-year licence is expected to generate up to £100 billion in sales for the new operator of the service. Allwyn’s predecessor, Camelot, reported sales worth £8.1 billion in the 12 months until the end of March. Furthermore, since its inception back in 1994, the National Lottery has generated about £46 billion for good causes, including the British Film Institute, the Arts Council, and UK Sport that currently supports athletes preparing for the Olympic and Paralympic Games.
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Olivia Cole
