Allwyn CEO insists UK National Lottery tech switchover will take place in 2025
Robert Chvátal says incoming technology will “transform” the UK National Lottery as transition from IGT to Scientific Games remains in progress
Allwyn CEO Robert Chvátal has said the new technology that will power The National Lottery will be in place in 2025, after reports claimed the pan-European business was facing difficulties in its implementation.
Allwyn officially took over the UK National Lottery in February 2024, having been awarded the fourth licence from the Gambling Commission in 2022.
However, the operator has faced a series of struggles in the proceeding months since taking over from the previous licence holder Camelot.
Kenneth Morton, Allwyn CFO, said in December 2023 that the UK would have a negative margin on the operator’s finances in the short term, an expectation that’s been reflected in the operator’s last two financial results.
In its latest Q3 earnings report, UK adjusted EBITDA slumped drastically to €7m, down 84% against the same period in 2023.
In the report, Allwyn stated: “The significant decline in [UK] EBITDA year on year was primarily due to the introduction of a new incentive and profitability mechanism with the start of the new licence.”
A report from The Telegraph link at the start of October laid out the issues faced by the operator since February, with the transition from IGT to Scientific Games as a supplier partner being highlighted.
The Scientific Games deal will see a new digital platform deployed, a revamped system for 40,000 retail terminals and a 92,000 sq ft scratchcard facility in Warrington.
The Telegraph report cited an unnamed, third party tech expert who said the shift has been like “trying to stick a Microsoft system on top of an Apple computer”.
Technology-related issues has resulted in customers facing delays in receiving their winnings, according to the newspaper’s report.
Despite the have mounting delays, Chvátal, speaking on an analyst call yesterday, insisted the transition would complete and be transformational for The National Lottery, which recently celebrated its 30th anniversary.
The CEO also stressed Allwyn remained committed to launching the new technology as soon as possible.
Chvátal said: “The switchover was a vast project to execute but was uneventful. But even more importantly is the transition to the completely new technology stack which will still happen next year.
“This should be in the best interest of The National Lottery and the good causes it generates, so it’s a balancing act.
“We are very committed to getting this new technology up and running as quickly as possible. It is in our interest. This tech switchover is just a part of our broader plans to transform The National Lottery over the course of the licence.
“I’m actually a long-term optimistic. Once this is done, this will be one of the biggest transitions in the history of the lottery industry.
“Once we have a new digital platform, we will see improvement of the user experience for the UK consumers and therefore hopefully more engaging and more playful UK National Lottery experience,” he added.