Allwyn Entertainment will take over the running of the National Lottery in 2023, having agreed terms to acquire Camelot UK outright.
A deal was reached with the Ontario Teachers Pension Plan (OTPP) for Camelot UK to be sold to Allwyn, who will take control of the Fourth National Lottery contract a year prior to its entitlement.
Financial terms were not disclosed by dealmakers, who held ‘advanced discussions’ in October to sell Camelot UK’s operations and systems to Allwyn in a move that was needed to ensure the smooth transition of National Lottery’s multi-billion operating contract.
As it stands, Allwyn expects to close the buyout of Camelot UK in Q1 2023, subject to regulatory approvals, as “Camelot will continue to be operated separately, in accordance with the terms of the Third Licence”.
Nick Jansa, Executive Managing Director for Europe, Middle East and Africa at Ontario Teachers, said: “We are proud to have been a strong supporter and partner of the National Lottery over the past 12 years.
“In that time, under Camelot’s stewardship, The National Lottery has raised more than £20bn for good causes and has supported thousands of organisations across the United Kingdom. We believe this sale best positions the National Lottery for a smooth transition to the Fourth Licence operator and wish Allwyn every success.”
Allwyn was formally awarded the fourth UK National Lottery licence in September, ending Camelot’s 28-year tenure as operating steward.
Camelot, alongside technology partner IGT Plc, has entered a High Court appeal against the UK Gambling Commission (UKGC) to challenge the design, rules and judging criteria of the Fourth National Lottery Competition. However, the parties will not contest the contract’s award to Allwyn as the winner of the competition.
Accelerating its stewardship, Allwyn last week announced that it had secured a new €1.6bn credit facility with international banks, which will be used to repay existing debt tranches and to pay “upfront National Lottery costs”.
Allwyn stands by its winning decree to reinvigorate the National Lottery for all audiences to guarantee optimal fundraising for good causes.
“We are delighted to have the opportunity to acquire the current operator of the third licence for the UK National Lottery,” Allwyn chief executive Robert Chvátal said. “Allwyn and Camelot share a common goal: a passion to protect and improve the UK National Lottery and the good causes it celebrates.
“Common ownership of the operators of both the third and fourth licences will help ensure the successful delivery of the National Lottery both in 2023 and over the next decade.
“Allwyn is committed to making the National Lottery better, raising more for good causes and improving player protection. This deal strengthens the transition process and helps support Allwyn in achieving its vision for the National Lottery.”