At the time when the UK was getting ready to issue a new licence for the operation of the country’s National Lottery, many believed that the incumbent operator – Camelot Group – would remain as the holder of the NL operating permit. However, the UK Gambling Commission (UKGC) surprisingly chose another company – the Czech Republic-based Allwyn – to operate the National Lottery, catching Camelot’s owner, the Ontario Teachers’ Pension Plan (OTPP), pretty much unprepared.
As Casino Guardian already reported, the OTPP eventually sold the assents of Camelot Group to Allwyn. Now, the company is making another surprising move by unveiling a decision to exit the Irish gambling sector as well.
Recently, the Ontario Teachers’ Pension Plan announced its decision to put its Premier Lotteries Ireland business up for sale. The move came unexpectedly because its operating licence for the Irish lottery, in which the OTPP has held a majority stake since the existing operating permit was awarded in 2014 is not set to expire for another 10 years.
Originally, the company paid €405 million for the rights to operate Premier Lotteries Ireland, along with the then-primary operator An Post and An Post Pension Funds.
For the time being, the reason for the decision remains unknown. According to some market analysts cited by The Irish Times, the organisation was still likely to keep its presence in Ireland, although it has already lost its foothold in the UK following the sale of the National Lottery.
Analysts Do Not Believe Revenue Has Anything to Do with the Irish Lottery Sale
So far, the Ontario Teachers’ Pension Plan has not provided a reason for its surprising move to dispose of the lottery. The decision comes about a month following the completion of the Camelot assets’ sale to Allwyn. According to reports, it received about £100 million for that sale.
Market experts do not believe that revenue has anything to do with the primary motivation of OTPP to initiate the sale of the Irish Lottery business, or at least, not officially. An update provided by the Ontario Teachers’ Pension Plan earlier in March revealed that a 4% net return was generated by the fund in 2022, as a result of strong returns acquired from “inflation-sensitive and infrastructure asset classes”. Apart from that, it also managed to add a value of CA$4.4 billion which exceeded the benchmark thanks to the fact that its 10-year average net return reached 8.5%. The find also established new offices in San Francisco and Mumbai.
Premier Lotteries Ireland has also enjoyed a strong performance. According to reports, its sales surpassed the €1-billion mark in 2021, as the lottery operator recorded a year-on-year increase of almost 15%. Its operating profit for the year amounted to a total of €25.3 million for the year.
Previously, the Ontario Teachers’ Pension Plan revealed it was fully funded as of January 1st, 2023 as a result of its strong performance in the previous year. It held a preliminary funding surplus worth CA$17.5 million, which helped the acquisition of the base metals and industrial minerals royalty firm Sweetwater Royalties. The OTPP paid CA$221.6 million in cash in return for a 25% stake in the company.
- Author
Olivia Cole
