The Czech Republic-based lottery operator Allwyn officially announced that it has finalised the takeover of Camelot UK Lotteries from its mother company, the Ontario Teachers’ Pension Plan Board (OTPP).
The transaction’s completion brought together two major lottery operators right before the next National Lottery licence comes into force at the beginning of 2024. As previously announced by the new licence holder of the UK National Lottery’s operating permit, Camelot UK will continue to run the lottery until its current licence expires in January next year.
Allwyn, which for the time being is running lotteries in the Czech Republic, Austria, Italy, Cyprus, and Greece, said that the acquisition deal came as a natural continuation and consolidation of the lottery market in the UK after Camelot acknowledged that it had lost the competition for the fourth operating permit for the National Lottery, which put an end to its 28-year tenure as NL operator.
As Casino Guardian reported, Camelot UK Lotteries was threatening to take the country’s gambling regulator – the UK Gambling Commission (UKGC) – to court for an alleged breach of the bidding process. In the end, the company that lost the competition for the fourth operating permit to Allwyn decided not to press charges and preferred to admit defeat – a move that pretty much gave the green light to Allwyn’s bid to take over its operations.
Camelot UK’s Acquisition Comes after Months of Controversy Regarding the Fourth UK National Lottery Licence
The takeover deal between the two companies was first confirmed in October 2022. At the time, Allwyn revealed that it was negotiating the potential acquisition of Camelot’s UK business. As Casino Guardian reported last month, the country’s gambling watchdog officially approved the proposed takeover deal and gave the green light to the completion of the transaction.
Normally, at the time when the acquisition was finalised, it also triggered a number of changes to Camelot’s management team and board of directors. One of the previously announced changes involved Sir Hugh Robertson, who served as Chairman of Camelot since 2018 and who was replaced by Sir Keith Mills at the time he stepped down from the job. After the departure of Nigel Railton from the UK business of the incumbent holder of the UK National Lottery’s licence, former Commercial Director Neil Brocklehurst and former Chief Financial Officer Clare Swindell were appointed as co-Chief Executive Officers who will lead Camelot into the new chapter of its operation under the hat of the Czech Republic-based Allwyn.
Allwyn reached an agreement with Ontario Teachers’ Pension Plan under which it was set to take over the group of companies under the Camelot Lottery Solutions brand to gain a much-wanted entry into the US lottery market. The acquisition price was not disclosed at the time.
Camelot Lottery Solutions has long-term permission to operate the Illinois Lottery as a private manager. It has also received the green light to join forces with the Arkansas Scholarship Lottery and help the lottery service offering enhance its operation. That is exactly why the acquisition of that group of companies was an important part of Allwyn’s future growth strategy. The company shared that the transaction is set to be finalised in the first quarter of 2023. Allwyn also shared that the team members and the leadership team of Camelot Lottery Solutions would continue to serve its lottery partners after the competition of the deal.
- Author
Olivia Cole
