Financial details of the deal were not disclosed but Allwyn did say it expects to complete the purchase in H2. Allwyn will finance the investment using its existing financial resources.
IWG supplies online instant win games to more than 25 national and state lotteries around the world. The IWG portfolio of content currently includes over 250 titles. For the year ended 30 April 2023, IWG posted £18.2m (€21.3m/$22.9m) in EBITDA.
“Allwyn’s agreement with IWG will enable us to create and leverage high-quality content throughout the group,” Allwyn chief investment officer Stepan Dlouhy said. “This demonstrates our ambition to deliver the best user experience to players across our international markets and to be the operator of choice.”
The Allwyn deal states IWG co-founders Rhydian Fisher and Simon Bucknall will remain in their current roles with the developer. Fisher will continue as CEO and Bucknall as chief operating officer.
“Rhydian and Simon bring a wealth of sector knowledge and creativity,” Dlouhy said. “We are excited to collaborate and explore new opportunities.”
Fisher added: “We are thrilled to be partnering with Allwyn to take IWG’s success and proposition to the next level. Allwyn’s deep expertise and knowledge of the lottery consumer will help us to deliver immediate and significant value for our existing partners, while this step will also create new opportunities for the brilliant games our team develops.”
Allwyn bulks up with another acquisition
The deal comes after Allwyn last week officially took control of the UK National Lottery. Allwyn replaces Camelot, assuming responsibility for all National Lottery operations and products.
In securing the fourth licence, Allwyn saw off competition from a number of heavy hitters. Rival bids included Camelot, which had run the lottery since its launch in 1994, as well as The New Lottery Company, owned by Health Lottery operator Northern and Shell and Italy’s Sisal.
Camelot will, however, remain part of the National Lottery family. This will be through its inclusion in the enlarged Allwyn business after several acquisition deals.
Allwyn purchased Camelot UK in February 2023 and Camelot Lottery Solutions (Camelot LS). The latter is a US-facing business that has since been rebranded as Allwyn North America to reflect the purchase.
The Camelot UK deal allowed Allwyn to fully prepare for taking control of the lottery. In essence, the Camelot UK acquisition granted Allwyn insight into the operations of the lottery ahead of it assuming its new responsibilities.
In related news, Scientific Games last week revealed details of “strategically planned milestones” to support Allwyn with operating the National Lottery.
Scientific Games said it has been working with Allwyn to prepare for the handover of responsibilities. Initiatives will see Scientific Games focus on growing the lottery responsibly and minimising environmental impact.
Original article: https://igamingbusiness.com/strategy/ma/allwyn-majority-stake-instant-win-gaming/
