Allwyn took control of the UK National Lottery on 1 February this year, taking responsibility for all operations and products. It replaced Camelot, which ran the National Lottery since its launch in 1994.
While there have so far been no major changes to the National Lottery since Allwyn took over the tender, plans for a significant upgrade are in motion. This was included in Allwyn’s successful bid for the licence, which runs through to January 2034.
However, the Telegraph reported on 12 November that sources close to the lottery say the upgrade has proved problematic for Allwyn. This led to several missed deadlines, with Allwyn now said to be working towards a new deadline of February 2025.
Sources say this target could be pushed back further until next summer or later in the year should issues persists. Some technology experts have compared the upgrade to “trying to stick a Microsoft system on top of an Apple computer”.
Issues with the upgrade began when International Games Technology (IGT) challenged the decision to award Allwyn the licence. IGT pursued a claim for damages in the High Court, having supplied technology to Camelot since the Lottery’s launch.
IGT eventually asked the Court of Appeal to dismiss the claim and agreed a new technology partnership with Allwyn. The whole case, however, led to a six-month deferral on the licence being finalised.
The Telegraph understands Allwyn’s board will meet this week to decide when it may switch to the new system.
£38 billion donations pledge under threat
The delays have cast doubt over the charitable donations pledge made by Allwyn during the bidding process.
Allwyn said it was aiming to more than double the amount sent to charities, from £17 billion (€21.5 billion/$22.6 billion) to £38 billion, over the course of the licence. This is based on the expected growth of participation after the upgrade.
However, the report suggests Allwyn will fall several hundreds of millions pounds short of projections during the first two years. Allwyn plans to make this up later in the licence period.
Andria Vidler, chief executive of Allwyn UK, maintains the upgrade will help charities. She said the new-look National Lottery will “boost funding” for good causes in the UK.
Allwyn already warned over funding drop
Charities were warned over a potential reduction in funding in the lead up to Allwyn taking control. The group reportedly said the previous year’s funding of around £1.8 billion would stay level during its first year.
This will not have been helped by sales slowing since Allwyn assumed control, though it remains upbeat about its long-term projection of doubling weekly good cause funding to £60 million.
“We are investing more than £350 million in the biggest technology upgrade the National Lottery has ever had,” an Allwyn spokesman said. “We are working towards switching over from the existing legacy systems – holding 30 years of data – to our new modern platform.
Charity lotteries like the National Lottery are facing increasing competition from free million-pound draws which are not burdened by regulatory scrutiny. Though the previous government did say it would consider regulatory these free draws as part of its review of the Gambling Act. It is yet to be seen whether the new Labour government will fulfil those plans.
Original article: https://igamingbusiness.com/lottery/allwyn-national-lottery-upgrade-delay-charity-funding/
