Allwyn acquires Camelot UK, ending uncertainty over business

Allwyn and Camelot have been at each other’s throats for a few, but very fraught months. Camelot challenged the outcome of the Fourth National Lottery license, accusing the UK Gambling Commission of not conducting the process according to form, and giving Allwyn an unfair advantage. A fiery battle ensued in the press and in courts, but a way towards rapprochement has been found after all.

It began with Camelot agreeing to withdraw its formal challenge to the outcome of the license-award process, which confirmed Allwyn as eligible to step in as the next UK National Lottery operator come February 1, 2024. However, much of the concerns Camelot had remained unresolved. The company said that it would effectively see its UK arm go bankrupt if it failed to secure the bid, and this is still true.

Only this time, Allwyn and Camelot seem to have been working behind the scenes. In October, Sky News reported that the pair was in advanced talks for Allwyn to acquire Camelot’s UK business, and this report has now finally been confirmed by Reuters and the companies themselves. As a result, the Czech gambling group will be purchasing all of Camelot’s UK operations, Allwyn confirmed on Saturday.

There was no mention of what the amount of the transaction would be, but it was previously reported at around $120m. The transaction should close early next year, most likely in the first quarter, although it’s still subject to regulatory approvals. Allwyn posted a statement in which it said that both Allwyn and Ontario Teachers’ Pension Plan Board have agreed for the acquisition to proceed without any objections on the part of stakeholders.

The agreed-upon price, even though unreported, seems to have satisfied all parties concerned. This marks a huge change in the fabric of the UK National Lottery since operations launched in 1994. Camelot was the de facto incumbent for many years, but the company finally lost to Allwyn which promised to significantly increase the contributions towards good causes, posting a much bigger number than Camelot.

Camelot’s loss came as a surprise to the company, which prompted it to momentarily challenge the decision by the UKGC, finding a formality in the license-award process that it argued was unfair and called for a re-run. However, the danger of blocking good cause funds has made it so that Camelot and Allwyn have reached an agreement behind the works, making sure that the UK National Lottery will experience a smooth change in leadership.

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