Allwyn Entertainment revealed it was in advanced discussions over its potential acquisition of Camelot UK. This business will be replaced as the operator of the UK National Lottery.
Sky News reported over the weekend that Allwyn, citing insiders, had begun talks with Ontario Teachers’ Pension Plan, the owner of Camelot UK. The deal was estimated to be worth around PS100m ($116m/EUR117m).
According to sources, an agreement may be reached in a few weeks. Allwyn will then take ownership of Camelot UK’s operations. This includes the rights (currently until February 2024) to run the National Lottery.
Allwyn confirmed the discussions but said that regulatory approvals would have to be obtained before any agreement could take place.
Allwyn confirmed that, “in response to speculations, we can confirm Allwyn’s involvement in advanced negotiations with OTPP may result in it buying Camelot UK operations”. If an agreement was reached, regulatory approvals would have to be obtained.
Our shared goal is to achieve an agreement that would serve the best interests of all the stakeholders in The National Lottery. This includes the charities it supports, as well as employees at Camelot UK and Allwyn UK.
Allwyn won the UK National Lottery’s fourth licence in a formal ceremony last month. This officially ended Camelot’s 28 year tenure as an operator.
The Gambling Commission has entered into an “enabling agreement” with Allwyn (formerly known as Sazka), meaning that Allwyn was officially awarded the license and the transition from a lottery operator to another had started.
The Commission had announced in March that Allwyn, the incumbent Camelot and The New Lottery Company were its top three preferred applicants for the license.
Camelot, and IGT its technology partner, criticised and challenged the Commission’s decision in court. They argued that the Commission was not upfront in their communication.
Camelot retracted its appeal in September after media reports indicated that funds for charitable causes might be put at risk during a long court battle. This removed Allwyn’s last obstacle to receiving the license.
Sky News reported that while Camelot had said they would pursue a claim of compensation separately, this process would stop if Allwyn were to be successful in their takeover.
Sources also claim that the agreement guarantees Camelot’s cooperation with Allwyn during the transition period.
Allwyn will take over the UK National Lottery on February 20, 2024.
