The UK Gambling Commission (UKGC) will not yet comment on the investigation into Allwyn, operator of the UK National Lottery.
This was said by a spokesperson for the Commission after being contacted by Lottery Daily, following a report in The Sunday Times.
Allwyn secured the National Lottery licence back in 2022 after winning the UKGC”s licensing contest. It commenced its first 10-year tenure on 1 February 2024, and has committed to doubling payments to good causes from £30m to £60m a week by the end of the licence.
However, Allwyn disclosed the UKGC investigation in its recently published annual report but did not provide any detail of the milestone that was not reached.
The report states: “After the end of the reporting period a contractual milestone in the enabling agreement was not reached.” The report adds that “the UKGC is reviewing what, if any, enforcement action might be taken against Allwyn UK in relation to that milestone.”
Regarding the UKGC review, a Commission spokesperson told Lottery Daily: “Where the Gambling Commission decides to commence enforcement action, the process is investigative in nature. We do not usually talk about individual cases. We may publish information about enforcement cases once they are complete.”
A spokesperson for Allwyn UK said: “Allwyn is investing more than £350m into the essential modernisation of The National Lottery, which hasn’t had a significant technology upgrade since 2009.
“Our investment will help restore the magic to The National Lottery, but the shift from outdated systems is complex and requires robust testing.
“We will deliver these essential upgrades over the coming year. We are working at pace to complete this transformation as soon as possible.”
Accounts show Allwyn to be profitable and growing
Allwyn has shown strong corporate governance and solid M&A capabilities throughout 2024.
Posting its FY24 results earlier in March, the multinational lottery firm reported €8.8bn in revenue representing a 12% YoY growth, 4% increase in EBITDA to €1.54bn, and GGR of €4.4bn (up 8% YoY).
This concluded an active year for the firm, which has moved to expand its geographic and operational remit via M&As. Last year saw the company agree terms to acquire a 51% stake in Novibet, pending regulatory and antitrust approvals, while also completing an investment in Instant Win Gaming.