Key points:
- The UK’s Gambling Commission is exploring penalties against Allwyn
- The new UK Lottery operator has failed to deliver on several previously promised objectives
- Allwyn has cited ongoing legal challenges and a miscalculation of the complexity of the changes as reasons for its failures
UK Lottery operator Allwyn is being reviewed by the UK’s Gambling Commission for failures to reach contractual obligations, as it continues in its takeover from previous lottery operator Camelot, as reported by the Times.
More specifically, Allwyn provided assurance of a number of technical upgrades as part of its campaign to inherit the multi-billion-pound UK Lottery contract from Camelot last year, which it has subsequently failed to deliver – according to the report. The operator has cited several legal challenges, alongside the unforeseen ‘scale and complexity’ of the changes, which have led to the delays in their implementation. As such, the Gambling Commission is now said to be exploring enforcement action against the company.
On these developments, Allwyn's annual report said: “While Allwyn UK continues to progress as expeditiously as possible while prioritising contributions to good causes, after the end of the reporting period a contractual milestone in the enabling agreement was not reached. The Gambling Commission is reviewing what, if any, enforcement action might be taken against Allwyn UK in relation to that milestone.”
Further, Allwyn provided Gambling Insider with the following comment: "As further context, protecting and maintaining returns to Good Causes at £1.6bn in our first year of operation has been a success and we continue to do everything we can to protect returns.
"It’s also worth noting that, over the course of the Fourth National Lottery Licence, Good Causes also receive a larger proportion of every ticket sold than under the Third Licence, including through a fixed contribution payable by Allwyn to Good Causes annually. So, we remain confident our plans will deliver on our ambition to double weekly returns to Good Causes from £30m a week to £60m by the end of the licence."
Good to know: Allwyn is currently in a legal battle with media mogul Richard Desmond, who is suing both the operator and the Gambling Commission over the handling of the Fourth National Lottery Licence
Recently, Allwyn published its FY2024 financial report, in which the group posted a total of €8.79bn ($9.97bn) in revenue, up 12% year-on-year.
More recently, the company gained certification from the European Lotteries and World Lottery Association, following recent efforts to bolster its responsible gambling initiatives.
