SBC News Voice of the Sports Betting Industry
Allwyn Entertainment has entered “advanced discussions” to acquire Camelot UK in a move to bolster its operations ahead of its takeover of the National Lottery’s stewardship in February 2024.
This weekend, Sky News reported on “surprise negotiations” between the two businesses that had fought a highly contentious tender to win the UK government’s multi-billion contract to operate the National Lottery.
Responding to the speculation this morning, Allwyn cited that it was “engaged in advanced discussions with Ontario Teachers’ Pension Plan (OTPP) which may lead to it purchasing Camelot’s UK operations”.
The global lotteries conglomerate provided no details on financial terms to acquire Camelot’s UK operating arm, which Sky News stated was valued by dealmakers at £100m.
Of significance, it was reported that Camelot would drop its outstanding legal challenge against the UK Gambling Commission (UKGC), should the deal be allowed.
Camelot and tech partner IGT Plc seek £600m in compensation from the Commission, contesting the design, rules and judging criteria of the Fourth National Lottery Competition.
In September, Camelot revised its legal challenge against the UKGC, choosing to suspend its appeal of enabling rights granted by the Commission to Allwyn to begin the transfer of National Lottery duties by 2024.
Camelot stated that its withdrawal on preventing enabling rights was undertaken in good faith, not wanting to prevent money raised for British good causes or the Exchequer – a duty the company had overseen for the past 28 years as National Lottery steward.
The withdrawal saw Camelot drop all legal challenges against Allwyn as the winning incumbent of the National Lottery
“If an agreement were to be reached, it would be subject to regulatory approvals,” read Allwyn’s statement.
“Our shared objective is to reach an agreement which would best serve the interests of the many stakeholders of The National Lottery, in particular the good causes it supports as well as the employees of Camelot and Allwyn UK.”
A source also said the deal would guarantee Camelot’s full cooperation with Allwyn in the period leading up to the licence transition.
The UKGC is said to be monitoring deal developments closely, which could result in Camelot withdrawing all legal challenges against the regulator.
