Allwyn set to buy rival Camelot UK for £100m

Czech Republic-based operator Allwyn is set to buy Camelot UK from the Ontario Teachers’ Pension Plan (OTPP) in a deal thought to be worth £100m.

Allwyn, which is set to take over the UK National Lottery, agreed to buy the incumbent operator Camelot to try and ease the handover process for the UK lottery and end any legal disagreements over the procurement process.

The deal is expected to conclude early next year, once it has received approval from the UK Gambling Commission (UKGC).

Allwyn won the licence to operate the UK National Lottery in March and was the first operator to replace Camelot since the lottery’s inception nearly three decades ago. Following the licence award to Allwyn, Camelot launched a legal challenge against the UKGC which delayed the handover process. The legal case was eventually dropped in September.

Camelot had also planned to pursue financial damages over how the UKGC had conducted the bidding process, but this is expected to be dropped after the takeover.

Robert Chvátal, Allwyn’s CEO, said the acquisition of Camelot UK will “strengthen the transition process and help support Allwyn in achieving its vision for the National Lottery,” following the delays caused by the dropped legal case.

Allwyn takes over the licence for the UK National Lottery in February 2024, and the deal will see most of Camelot UK’s 900 staff transferred to Allwyn as part of the lottery licence transfer.

On the deal, Chvátal said: “We are delighted to have the opportunity to acquire the current operator of the third licence for the UK National Lottery.

“Allwyn and Camelot share a common goal: a passion to protect and improve the UK National Lottery and the good causes it celebrates. Common ownership of the operators of both the third and fourth licences will help ensure the successful delivery of the National Lottery both in 2023 and over the next decade.”

Nick Jansa, OTTP executive managing director for Europe, the Middle East and Africa, added: “We are proud to have been a strong supporter and partner of the National Lottery over the past 12 years. In that time, under Camelot’s stewardship, the National Lottery has raised more than £20bn for good causes and has supported thousands of organisations across the United Kingdom.

“We believe this sale best positions the National Lottery for a smooth transition to the fourth licence operator and wish Allwyn every success.

“I want to express my sincere thanks to Camelot’s management and employees for their tremendous efforts in successfully running the National Lottery over the last decade, including achieving record revenues to good causes in the last year,” he added.