A transformational period for international lottery group Allwyn continues at pace as the company’s owner, KKCG, sells off a minority stake to a fellow Czech firm.
The deal has valued Allwyn’s share capital at €11.2bn as of 31 December 2024, and will see Prague Stock Exchange-listed J&T Arch Investments acquire a 4.27% stake from KKCG.
“This is another significant step for Allwyn,” said Karel Komárek, Allwyn’s Chair and billionaire businessman who founded KKCG.
“It demonstrates the positive impact of KKCG’s vision and support for the business, and investor confidence in Allwyn’s successful growth-led strategy.
“I see many opportunities ahead for significant and sustainable value creation for Allwyn and I’m delighted that a wider range of investors can now join us on that journey.”
J&T Arch paid around CZK 12.3bn (€500m) for the minority stake, with the company’s Chairman, Patrik Tkáč, stating that Allwyn is a ‘great story of a leading Czech entrepreneur’s business’ and an opportunity for future growth for his firm’s investors.
Allwyn’s global growth vindicated
The huge valuation Allwyn has received from the KKCB-J&T Arch sale is more positive news for the company as it continues to embark on a journey of global growth, shoring up its position in established markets while pursuing new opportunities.
This year marks the Allwyn’s second as operator of the UK National Lottery, a task it took on in February 2024 after winning the fourth National Lottery licence tender in 2021.
It has embarked on an upgrade of the lottery’s retail and online network, a condition of its operating licence – though the timeliness of this was questioned by the UK Gambling Commission (UKGC), according to the regulator’s reports.
Allwyn is now well established in the UK with nine more years to go on its National Lottery licence, while also acquiring a majority stake in instant lottery product developer Instant Win Gaming (IWG) in 2024.
On top of this it also retains strong positions in the Czech Republic, Austria and Greece, and may soon expand its position in the latter by securing a stake in bookmaker Novibet. It is also chasing leads in the US, and has appointed former Betfred USA CEO Kresimir Spajic as head of its global Allwyn Digital division.
The firm’s leadership is confident that despite a few hurdles here and there, such as the UKGC probing of its National Lottery upgrade timeline, today’s stake sale and valuation is indicative of future growth trajectory.
Robert Chvátal, Allwyn CEO, said: “At Allwyn, we’re on a mission to become the leading global gaming entertainment company. We have demonstrated that our platform delivers, and there is real momentum behind our exciting future growth strategy.”