Allwyn Entertainment has confirmed that it is currently in “advanced negotiations” to take over its lottery rival Camelot UK.
The Ontario Teachers’ Pension Plan (OTTP), which is the owner of Camelot UK, is considering the potential sale of the British operations of the company to Allwyn, which earlier this year received the fourth National Lottery licence.
As reported by Casino Guardian at the time, in March, Allwyn managed to beat the incumbent Camelot and emerged victorious from the competition for the fourth 10-year operating permit for the UK National Lottery. However, because of a legal challenge filed by the outgoing operator, the official handover of the licence was delayed.
As previously reported, Camelot UK lodged an appeal against the UK Gambling Commission’s (UKGC) decision to appoint Allwyn as its company of choice to operate the National Lottery for another 10 years. Several months later, however, in September, the incumbent National Lottery operator unexpectedly decided to withdraw its legal challenge.
Some market analysts believed that the withdrawal of the legal action would put an end to the story but the drama seems to be far from over, especially considering the recent announcement of the ongoing preliminary takeover talks between the owner of Camelot UK and Allwyn.
Takeover Agreement Could Be Reached in the Coming Weeks, Experts Say
According to media reports, the two companies are discussing an agreement worth a total of £100 million. If completed, the deal would see Allwyn actively take over the operation of the UK National Lottery even earlier than initially planned. For the time being, the company is set to take control of the National Lottery operating permit as of February 2024.
Although Allwyn did confirm it was in talks for the potential purchase of the UK operations of Camelot, the company did not disclose a specific price for the deal. In fact, not many details were unveiled by the operator, which explained that the two companies’ shared objective is to reach an agreement that would best serve the interests of the National Lottery’s stakeholders and the good causes that have been supported by the NL, as well as the local employees of both Allwyn and Camelot.
According to unnamed sources familiar with the matter, an agreement between the two companies could be struck in the upcoming weeks. The UKGC, which has been the body overseeing and controlling the awarding of the new National Lottery operating licence earlier in 2022, has reportedly been informed about the discussions.
Some experts also suggested that an acquisition deal would see Camelot withdraw its compensation claims against the UK Gambling Commission and its National Lottery’s operator of choice. While the incumbent NL operator dropped its legal challenge against the fourth 10-year operating permit that had been granted to Allwyn in September, the company has continued to pursue its legal claims seeking separate compensation from the country’s gambling regulatory body.
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Olivia Cole
