Allwyn AG has agreed to a deal with the Ontario Teachers’ Pension Plan Board to acquire Camelot UK Lotteries Limited, the current operator of the UK National Lottery.
Once the acquisition closes, expected in Q1 2023, Camelot UK Lotteries Limited will become a wholly-owned subsidiary of Allwyn.
The acquisition is subject to regulatory approvals, including from the UK Gambling Commission, and while the terms of the transaction weren’t confirmed, it is rumoured to be valued at around £100m.
“We are delighted to have the opportunity to acquire the current operator of the Third Licence for the UK National Lottery. Allwyn and Camelot share a common goal: a passion to protect and improve the UK National Lottery, and the good causes it celebrates,” commented Robert Chvátal, CEO of Allwyn AG.
“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.”
Camelot is the current operator of the UK National Lottery (third license) under a license that expires on 31 January 2024 and it will continue to operate separately per its license.
Allwyn will then operate the lottery under the fourth license from 1 February 2024 and both parties are working with the Gambling Commission to complete a smooth transition.
“We are proud to have been a strong supporter and partner of the National Lottery over the past 12 years,” added Nick Jansa, Executive Managing Director for Europe, Middle East and Africa at Ontario Teachers.
“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.
“I want to express my sincere thanks to Camelot’s management and employees for their tremendous efforts in successfully running the National Lottery over the last decade, including achieving record revenues to good causes in the last year.”
Earlier this month, Allwyn announced it had secured funding from a syndicate of international banks as the company gears up to operate the UK National Lottery.
Lenders under the Senior Facilities Agreement will supply €1.6bn in aggregate funding equally split across €441m of amortising term loans due 2027, €441m of bullet term loans due 2028, a €300m revolving credit facility due 2027 and a £380m multipurpose facility available to be drawn as guarantees or term loans maturing in 2027.