A planned major technology overhaul of the UK National Lottery could be further delayed by Allwyn and subsequently impact charitable donations and fundraising, according to reports.
Allwyn took control of the UK National Lottery on 1 February this year, taking responsibility for all operations and products. It replaced Camelot, which had run the National Lottery since its launch in 1994.
Plans for a significant upgrade are in motion. This was included in Allwyn’s successful bid for the licence, which runs through to January 2034.
However, the Telegraph reported on 12 November that sources close to the lottery say the upgrade has proved problematic for Allwyn. This led to several missed deadlines, with Allwyn now said to be working towards a new deadline of February 2025.
Sources say this target could be pushed back further until next summer or later in the year should issues persists. Some technology experts have compared the upgrade to “trying to stick a Microsoft system on top of an Apple computer”.
Issues with the upgrade began when International Games Technology (IGT) challenged the decision to award Allwyn the licence. IGT pursued a claim for damages in the High Court, having supplied technology to Camelot since the Lottery’s launch.
IGT eventually asked the Court of Appeal to dismiss the claim and agreed a new technology partnership with Allwyn. The whole case, however, led to a six-month deferral on the licence being finalised.
The Telegraph understands Allwyn’s board will meet this week to decide when it may switch to the new system.
£38 billion pledged in donations under threat
The delays have cast doubt over the charitable donations pledge made by Allwyn during the bidding process.
Allwyn said it was aiming to more than double the amount sent to charities, from £17 billion (€21.5 billion/$22.6 billion) to £38 billion, over the course of the licence. This is based on the expected growth of participation after the upgrade.
However, the report suggests Allwyn will fall several hundreds of millions pounds short of projections during the first two years. Allwyn plans to make this up later in the licence period.
Andria Vidler, chief executive of Allwyn UK, maintains the upgrade will help charities. She said the new-look National Lottery will “boost funding” for good causes in the UK.
Allwyn already warned over funding drop
Charities were warned over a potential reduction in funding in the lead up to Allwyn taking control. The group reportedly said the previous year’s funding of around £1.8 billion would stay level during its first year.
This will not have been helped by sales slowing since Allwyn assumed control. However, it remains upbeat about its long-term projection of doubling weekly good cause funding to £60 million.
In a statement issued to iGB, an Allwyn spokesperson said “significant progress” has already been made on transforming the National Lottery.
“For example, we’ve started overhauling our 40,000-strong National Lottery retail estate, launched a number of new campaigns and products – including Paris 2024, Lotto and Set For Life campaigns – and introduced a number of new player protection measures, including our pioneering new scratchcard purchase limit,” Allwyn said.
“All of this, and so much more, is laying the groundwork as we look to reinvigorate the National Lottery, bringing back the magic and enabling us to generate more money than ever before for National Lottery-funded projects over the next decade.”
Charity lotteries like the National Lottery are facing increasing competition from free million-pound draws which are not burdened by regulatory scrutiny. Although the previous government did say it would consider regulatory these free draws as part of its review of the Gambling Act. It is yet to be seen whether the new Labour government will fulfil those plans.
