The National Lottery licence winner is in talks to buy the incumbent operator.
UK.- Allwyn’s victory in the Gambling Commission’s tender for the next UK National Lottery licence was a historic moment. It means an end to Camelot UK’s unbroken 30-year reign since it launched the lottery back in 1994.
Camelot quickly lodged a legal complaint and said losing the licence would mean the end of its existence. But now it seems that an unexpected solution might be found. Allwyn is reported to be in talks to buy Camelot UK from its current owner, the Ontario Teachers’ Pension Plan.
According to Sky News, an agreement could be struck in the coming weeks, with Allwyn paying up to £100m.
“Allwyn is engaged in advanced discussions with Ontario Teachers’ Pension Plan which may lead to it purchasing Camelot’s UK operations,” the companies responded in a joint statement.
In March, the Gambling Commission chose Allwyn as its preferred applicant to run the National Lottery. The Czech company was officially awarded the fourth licence to operate the lottery in September. With the licence to start in February 2024, the transition process has now begun, with Allwyn opening offices in Watford where Camelot has its base.
The Gambling Commission is believed to have been informed about the discussions, which could lead to Allwyn having access to Camelot’s UK earnings around a year before it takes over the franchise. The deal would also end Camelot’s legal challenge against the Gambling Commission’s decision to award the next licence to Allwyn.
Group CEO Robert Chvatal has laid out the Czech giant’s plans for the National Lottery. Speaking to The Times, Chvatal said Allwyn would modernise the lottery through the right combination of brand, games and “the best technology”.