Allwyn is the new UK National Lottery operator. The stakes are higher than ever. Marese O’Hagan talks to Robert Chvatal (group CEO) about the company formerly known under the name Sazka Group. He explains how Allwyn is preparing to seize this huge opportunity.
It was expected that there would be some fallout when Allwyn was named the winner for the fourth UK National Lottery license in February 2022. Camelot was the undisputed UK National Lottery license holder for the past 28 years.
The aftermath proved to be more intense than initially thought. Camelot filed a High Court challenge to the decision days after it was announced. Camelot’s chief executive Nigel Railton claimed that the GB Gambling Commission had made a “bad decision”.
Although the legal challenge was dropped last September, there was still a sense of doubt. Robert Chvatal, chief executive of Allwyn, stated that the company is ready to accept the license despite the disruption caused by the legal challenge. Allwyn has acquired Camelot’s UK operations, and Chvatal is acting as interim CEO in order to make sure everything goes smoothly.
Chvatal says, “We felt extremely proud and humbled when we heard that we had won the process last March.” “I believe we were able bring the best Europe to bear in the bid and highlight the opportunities to make the UK National Lottery better, safer, and bigger.”
What will Allwyn’s tenure look like? Chvatal says digitalization – which includes a balance between online and retail lottery – is what Allwyn’s tenure will look like.
He explains that “Going forward, it must be a journey to portfolio innovation, a trip of further digitalisation – not just in the online space, but in retail.” “Retail is very important to us. We’re committed to growing the channel and helping the brick-and-mortar world keep up with the digital times.”
Leading the transition
Allwyn’s bid to win the fourth National Lottery license was driven by player protection. The company will make sure that this is a major part of its plans. Chvatal says that this will directly feed into the National Lottery’s Good Causes program.
He continues, “It’s also an adventure of robust player protection since that’s what lottery should be.” “We don’t want to be dependent upon a few high-rollers.
“We aim to be as wide as possible and have a broad customer base that plays regularly or only occasionally, and ultimately contributes to the highest possible returns to charitable causes in the UK.”
Allwyn does not intend to reinvent the wheel. Chvatal claims that its plan focuses on improving existing practices.
He explains that “our first priority is to make a seamless transfer on day one between third and fourth licences.”
“Then, the focus will shift to innovation in product portfolio. We are aiming for the gradual building up of existing products and further development.
Operation Transformation
Chvatal is confident in setting the foundation for Allwyn’s new tenure but he doesn’t take it for granted, especially in Europe where Allwyn is a strong presence.
He says, “We strongly believe that being granted an exclusive license is not something you should take for granted or be complacent about.” “No exclusive or monopoly position in the world can guarantee success or relevance to consumers.”
Even if Allwyn gets a monopoly – as it did with OPAP Greece – Chvatal believes that humility is the key to strength.
“We work with our teams almost as if there were no monopoly because there are many options for gamers to choose from.
Chvatal decides to return to the UK where he recognizes the importance of the National Lottery in improving daily life.
He continues, “What I feel in UK – and what is particularly advantageous compared with other markets – is that there are a very finite and very concrete set of beneficiaries, ranging from cultural, sports, heritage, social, and so on.” This makes the connection between the lottery and society’s benefits, both for consumers and society, more tangible, more visible.
The Land of the Free
Despite Allwyn’s success in other countries, such as Greece and Cyprus (OPAP), Austria and Casinos Austria, Italy (Lottoitalia), and the Czech Republic (“Sazka”), US plans are still not taking off.
It declared its intention to list on New York Stock Exchange (NYSE). by a deal with Cohn Robbins Holdings Corporation. Although was unable to be listed on the New York Stock Exchange (NYSE) in August, plans to import its expertise to the USA are not dead.
Chvatal says that the US has been an attractive market for Allwyn. “First, while the US lotteries generate large revenues, they don’t necessarily have the fastest adoption of online or ilotteries.
“Secondly, we wanted the US to be a part of our campaign for more liberalization of lotteries.”
“When, not If”
Chvatal claims that market conditions were a major factor in the delisting of its plans.
He explains that Allwyn considered listing to be a very natural next step. “But, we ultimately decided not to do so because the financial and capital markets were extremely volatile.”
“The purpose of listing was to reaffirm [Allwyn]’s status as the operator of choice in lotteries, vis-a-vis individual regulators and governments with which we are publicly listed.”
When it comes to listing, Allwyn says that the question is not whether but when.
Camelot’s US company , Camelot Lottery Solutions was acquired by Allwyn earlier this month. The deal was completed in January. What does this mean for Allwyn’s US presence, given that it now owns the Illinois state lottery business?
Chvatal says that Camelot US was a chance that presented at the same moment as Camelot UK. It was almost like a double-deal, as it was an instant entry to the US market for us with the possibility that we would have to extend our license in Illinois.
Moving forward
Chvatal is optimistic about the future, despite the difficulties Allwyn has had to face.
He says, “At the moment we are at a stage where we want consolidate our position on individual markets.” “This is certainly the case in the UK. We need to be focused on the transition.
“So there may be some pause regarding the new flags on map. Because we believe that our greatest priority is to master transition in the UK, and master the entry into the USA, where we are taking control of the Illinois lottery, and developing it.”
Allwyn says that he aspires ultimately to be number one. The number one UK National Lottery Facilitator, the number 1 operator of choice and the number 1 enactor of player safety schemes.
Allwyn has ample time to be the best of the pack, with a ten year tenure beginning in 2024.
