Allwyn Completes Camelot Takeover
Author:
Muhammad Gregory
European lottery giant Allwyn has successfully completed its acquisition of Camelot UK Lotteries Limited. Camelot will continue to operate the National Lottery until the end of January 2024, when the license will be handed over to Allwyn. The takeover aims to smooth the transition between the third and fourth license periods.
Following the completion of the acquisition, Camelot has made a number of changes to its top-level management team. ?Zoe Pappas/Pexels
Smooth Transition Period
Incoming National Lottery operator Allwyn has completed its takeover of Camelot UK from the Ontario Teachers’ Pension Plan Board. Camelot is now a wholly owned subsidiary of Allwyn, which is due to take over the UK’s fourth National Lottery license in 2024.
Allwyn will assume the coveted license in February 2024, after being awarded the contract by the Gambling Commission last year. The regulator’s decision came as a shock to many, including Allwyn itself, as Camelot had successfully fought off its rivals in all three previous license competitions.
Until then, Camelot will continue to act as the lottery’s operator in name only, as the acquisition does mean that Allwyn assumes control of the license through its new holding. Allwyn’s ambition to buy out Camelot UK was revealed last November, as a method to ensure that the transition between the two license periods is carried out smoothly.
Speaking at the time, Allwyn Group CEO Robert Chvátal said that both parties share a common goal, to protect and improve the National Lottery and the Good Causes it supports. He added that common ownership of both operators would help to ensure the successful delivery of the National Lottery in 2023 and beyond.
Since the terms of the takeover were agreed, Chvátal has been given further interim responsibilities as CEO of Allwyn UK. In January, Allwyn confirmed that he would drive the operator through the transition period towards the commencement of the fourth National Lottery license period.
Chvátal takes over from David Craven, who has left the company. Craven joined Allwyn in July 2021 and was pivotal in leading the team that secured the firm’s successful bid to operate the National Lottery. Craven also guided Allwyn through the numerous legal challenges it faced since being awarded Preferred Applicant status in March 2022.
Good Causes
Allwyn operates a number of lotteries across Europe. Thanks to its focus on innovation, technology and safety, it holds leading market positions in Austria, the Czech Republic, Greece, Cyprus and Italy. Via its 64,000 points of sale and digital platforms, Allwyn is able to serve a market of more than 79 million adults. The lottery giant boasts annual sales of over €16 billion.
In addition to offering exciting and entertaining products to its users, Allwyn contributes significantly to the national and local economies in which it operates. It is one of the largest taxpayers in each of its jurisdictions, returning more than €2 billion to governments in taxes and lottery duties.
Allwyn is also proud to support communities directly, through investments from each of its brands. These help to finance an array of good causes, encompassing the sports, arts, health and community sectors. The success of Allwyn’s bid to run the National Lottery has been attributed to its ambitious proposal, which projected that it would raise ￡38 billion for Good Causes.
While Camelot did eventually drop its legal challenge against Allwyn and the Gambling Commission, further problems could still lie ahead. International Gaming Technology, Camelot’s technology provider, has maintained its legal action against the regulator’s decision to award the license to Allwyn.
Camelot has operated the National Lottery since its launch in 1994. Nearly thirty years later, the operator has generated ￡47 billion for Good Causes, a figure around 65% higher than the government’s original expectations. Recent years have seen the delivery of record sales and returns to Good Causes.
With the rise of online gambling, Camelot has overseen its own digital product innovations. However, new products including instant win games have been criticized by some due to their lower contributions to Good Causes and concerns over problem gambling. The National Lottery is the UK’s largest public sector contract. It is estimated that the ten-year license could generate anywhere in the region of ￡80 billion to ￡100 billion in ticket sales.
Management Changes
Following the announcement that the deal has been completed, a number of key changes to Camelot’s board and management team have been triggered. These were previously announced on January 23rd, after the Gambling Commission granted permission for the acquisition to go ahead.
Sir Hugh Robertson, who has acted as Chairman for Camelot since 2018, has stood down from the role. He will be replaced by Sir Keith Mills. Announcing his departure, Robertson took the opportunity to thank his co-workers for their hard work and commitment to the National Lottery. Robertson stated:
“It’s been an enormous privilege to have been Camelot’s Chairman. Since 2017, National Lottery sales have grown from ￡6.9 billion to ￡8.1 billion last year. In the first six months of this financial year, Camelot reported the highest-ever first-half returns to Good Causes in the history of The National Lottery. This performance is the result of the commitment of each and every one of my colleagues, to whom I would like to give my heartfelt thanks.”
The former Chairman also commended CEO Nigel Railton, with whom he worked closely. He praised Railton’s achievement in leading the UK business to deliver record performances. Nigel Railton has now left his post as CEO of Camelot, a position he has held since 2017. Railton has been with the company for 24 years, having held roles including Financial Controller, Group Chief Financial Officer and Strategy Director.
Before returning to the UK to lead the company, Railton led Camelot’s international business to great acclaim, winning licenses in Ireland and Illinois. Allwyn has appointed former Chief Financial Officer Clare Swindell and former Commercial Director Neil Brocklehurst as Co-Chief Executives to lead the company. Executive Director Matt Ridsdale has also left the company.
