Official lottery license granted to Allwyn
The Allwyn Group, a global gaming company, has been chosen by the UK Gambling Commission (UKGC) to operate the National Lottery for the next decade, starting February 2024. This decision, controversial in some circles, marks a significant shift in the management of the UK's beloved lottery.
Allwyn's tenure promises a substantial increase in charitable contributions, with the aim of doubling the funding allocated to good causes over the next ten years, amounting to an estimated £38 billion. Since its inception, the National Lottery has raised over £50 billion for various good causes, with more than £1.8 billion raised in 2023/24 alone. The company emphasises the importance of maintaining the “One National Lottery” model to maximise returns for good causes and the Treasury, highlighting their commitment to safeguarding and growing funding for arts, sport, heritage, health, education, environment, and charitable projects across the UK.
On the technological front, Allwyn has pledged to invest £350 million to modernise the National Lottery’s infrastructure. This includes upgrading the estate of 43,500 lottery terminals and undertaking a major IT system upgrade aimed at revitalising the lottery experience. However, the rollout of this upgrade has faced scrutiny and regulatory oversight due to delays and concerns about the handling of contracts and the pledge to increase charitable donations. The Gambling Commission is closely monitoring Allwyn’s operations, demanding approval of major business decisions to ensure smooth implementation and compliance.
Allwyn's goals extend beyond charitable funding and technological advancements. The company aims to win back customers who have stopped playing and attract a new generation of players by introducing new games and technologies. A fresh approach is important to prevent complacency in the National Lottery, and Allwyn's plans reflect this need for innovation.
Andrew Rhodes, CEO of the UKGC, expressed confidence that Allwyn and the key changes for the fourth license will maximise proceeds for charitable purposes, promote innovation, fulfil legal obligations, and protect the unique status of the national lottery. The UKGC is focusing on better control and supervision of the license holder to ensure duties are fulfilled.
The decision to award the license to Allwyn means that they are officially confirmed as the winner, following a competitive bidding process. However, it's worth noting that previous license holder, Camelot, partially succeeded in a court challenge but ultimately withdrew from the race.
The UKGC is also preparing guidelines for existing lottery retailers to ensure a smooth transition. As Allwyn opens an office in Watford to ensure a seamless handover with Camelot, the stage is set for a transformative decade for the National Lottery.
What could be the potential adjustments to casino-gambling and casino-games offered by the National Lottery under Allwyn's management, given the company's goal to attract a new generation of players and promote innovation?
Facing scrutiny and regulatory oversight during the rollout of technological upgrades, the Gambling Commission remains vigilant in monitoring Allwyn's operations, seeking approval of major business decisions and ensuring compliance with lotteries regulations.
