Allwyn has entered advanced discussions with the Ontario Teachers’ Pension Plan (OTPP) regarding the potential purchase of Camelot UK, which is valued at around £100 million (€117 million/$116 million). Sources indicated that an agreement might be reached in the next few weeks, allowing Allwyn to take over Camelot's UK operations, including its current rights to operate the National Lottery until February 2024 when Allwyn is set to assume control.
In a statement confirming the talks, Allwyn specified that any deal would require regulatory approval. "In response to speculation, we can confirm that Allwyn is engaged in advanced discussions with OTPP which may lead to it purchasing Camelot’s UK operations," the company stated. They emphasized their goal is to reach an agreement that serves the interests of the stakeholders of The National Lottery, including the charitable causes it supports and the employees of both Camelot and Allwyn UK.
Last month, Allwyn was awarded the fourth UK National Lottery licence, effectively concluding Camelot’s 28-year period as the operator. This followed an enabling agreement with the Gambling Commission, indicating that Allwyn's transition to the new lottery operator had officially commenced. The Commission had previously announced Allwyn as its preferred applicant for the licence, surpassing incumbent Camelot.
Camelot, along with its technology partner IGT, criticized the Gambling Commission's decision and sought to challenge it in court. They claimed there was a lack of transparency in the Commission’s communications and that employees deserved clarity on the licence not being reviewed. This led to a High Court suspension of the licensing decision. However, in September, Camelot withdrew its challenge following concerns that ongoing litigation could jeopardize funding for charitable causes, which removed Allwyn's final barrier to receiving the licence.
While Camelot has indicated plans to file a separate claim for compensation, sources suggest this could be withdrawn if Allwyn's takeover materializes. Additionally, the deal would ensure that Camelot cooperates fully with Allwyn leading up to the licence transition scheduled for February 2024.
