The Gambling Commission of Great Britain has officially awarded the National Lottery license to Allwyn. The company will begin operations no later than February 2024.
The formal tender comes after the previous operator of three decades dropped a legal challenge to the fourth license issuance earlier. Camelot, joined by IGT delayed the transfer with a lawsuit over the £6.4bn contract.
In mid-July, Camelot and IGT were granted permission to appeal a ruling that upheld The UK Gambling Commission’s award of the license to Allwyn, leaving in place an automatic suspension of the license tender. The suspension was lifted after each of the appellants withdrew their appeals.
In a statement on the official UKGC website, the authority stated: “Our priority is to ensure a seamless and timely transition to the next license, for the benefit of participants and good causes.”
The UK National Lottery was launched in 1994 and is one of the world’s most played lotteries. Proceeds of over £46 billion have been generated and delivered to more than half a million helping organizations and other good causes including the arts, sports, heritage, and communities.
Allwyn has stated it plans to double charitable giving during its tenure as a lottery steward.
Andrew Rhodes, Commission Chief Executive Officer, said: “We are pleased to have officially awarded the fourth license to Allwyn following a highly successful competition and the court’s decision to lift the suspension on the award process. We now look forward to working with all parties to ensure a smooth and efficient handover.
“I am confident that Allwyn and the key changes for the fourth license will maximize returns to good causes, promote innovation, deliver against our statutory duties, and ultimately protect the unique status of the National Lottery.”
This newest license will include some key changes, including the following:
An incentive mechanism that encourages the vendor to more closely align good causes distribution to profit goals, resulting in more returns to good causes
Implementation of an outcomes-based approach more in line with the National Audit Office’s best practices recommendations
New abilities for the licensee to introduce new products and technologies to remain competitive and compliant as long as they continue to meet license obligations
A fixed license period of ten years to allow investment planning by the vendor
A retail charter beginning in February 2024 to ensure the licensee has proactive engagement with lottery retailers
Allwyn Entertainment is the new name of, and the UK arm of Czech billionaire Karel Komárek’s Sazka Group – a premier operator of lotteries in Czechia, Greece, Italy, Cyprus, and Austria.
Source: The fourth National Lottery licence in the UK has now been officially awarded to Allwyn, UKGC, September 20, 2022