Allwyn believes that social gaming will define the way future consumers, chiefly those from the Gen Z demographic, will interact with its products and those of those companies.
The multinational firm, best known in the UK as operator of the National Lottery, has published a report examining changing consumer trends across various ages, but the findings on Gen Z perspectives on gaming consumption are what really stands out.
According to Allwyn, the Gen Z demographic – generally seen as those born between 1997 and 2012 with a cohort of ‘zinnelials’ from 1997-1998 – are ‘trailblazers redefining play’. So how will these Gen Z trailblazers shape Allwyn?
Talkin’ about a generation
First things first, let’s take a look at what Allwyn has uncovered and how it did it. The company surveyed 2,093 respondents via a 15 minute online survey, consisting of 1,128 National Lottery players and 1,786 gamers. Respondents came from various age groups, not just Gen Z.
Qualitative research was also carried out. This included interviews, a five day online community event with 23 regular gamers, and a one-and-a-half hour focus group involving six gamers, chosen to represent specific audience segments and behaviour.
Based on this research, Allwyn has determined that Gen Z’s consumption habits are defined by some core characteristics – they are socially driven, community oriented and nostalgic, are ethical consumers, and ‘productive gamers’.
Of the thousands surveyed, 43% said they prefer social gaming with other people involved, and 74% value more retro feels to products like video games despite coming of age in the first truly digital era in human history.
A further 58% stated that playing games, whether video games or national lottery according to the research, enables them to be part of a community. Just under half, 46%, are described as being driven by a social purpose when spending.
Andria Vidler, CEO of Allwyn UK said: “Whether it’s groups of friends forming lottery syndicate or neighbours chatting about the board game that will keep families occupied, social connection has always been at the core of entertainment.”
Of course, conflating National Lottery and video game products is a difficult comparison, so perhaps the methodology should be taken with a pinch of salt. However, it makes sense when looking at Allwyn’s business model.
The firm built its name in lotteries, managing the Czech National Lottery, maintaining a stake in Greek national lottery operator OPAP and later merging with the company, and becoming UK National Lottery operator in 2024 after securing the licence in 2022.
It has been expanding into new territory, however. The majority acquisition of US daily fantasy sports (DFS) platform PrizePicks last year is perhaps the biggest example of this, and explains why Allwyn’s interest in gaming is growing.
A social future for the National Lottery?
The conclusion that Gen Z consumers enjoy social gaming and are driven by social purpose is likely a reassuring stat for Allwyn, certainly from the lens of its role as the operator of the British National Lottery.
Under its contract with the UK Gambling Commission (UKGC), which awarded it the licence, Allwyn is, obviously, required to ensure National Lottery ticket sales remain steady.
According to UKGC stats, the National Lottery remains broadly popular with 19% of Gambling Survey for Great Britain (GSGB) respondents reporting buying a lottery product at some point in the previous 48 weeks.
Allwyn needs to make sure this continues, and in turn that the revenue from ticket sales is directed into good causes – it has pledged to double returns to good causes from £30m to £60m by the time its 10 year contract as fourth National Lottery licence holder ends in 2034
The trouble is that National Lottery ticket sales have been declining over the past three years, according to a DCMS-commissioned report from June last year at least. The report found that lottery ticket sales led to a decline in good causes returns from £1.73bn in 2020/21 to £1.57bn in 2023/24 – though to be fair to Allwyn this was when the lottery was managed by Camelot UK.
Perhaps Gen Z is the boost that Allwyn and the National Lottery needs? The social purpose characteristic of Gen Z consumption may come in handy here, given the lottery’s purpose is to generate cash for charitable initiatives and other programmes, like Olympic training for example.
Alwyn has taken note of the need to focus on social value and social connection, but not just among Gen Z. The firm’s report observes that 59% of players expressed a desire for more social and community features and that 64% of people are more likely to play the lottery because of its charity mission.
The company’s stated objective is now to modernise and future proof the National Lottery, particularly by investing in technologies and innovations that will appeal to a growing demand for social gaming and social purpose.
“Gaming will never replace physical human interaction, but our A New Way to Play report suggests it is increasingly valued for maintaining and developing relationships,” said Vilder.
“As we continue to transform The National Lottery, we must ensure our games continue bringing players together – whether through play itself or the impact of Good Causes in local communities.”
2024 and 2025 were already investment heavy years for Allwyn, with over £400 pumped into tech and operational upgrades since February 2024. This included a huge upgrade to National Lottery terminals last year, though the timeliness of this did lead to some Gambling Commission scrutiny.
We could now expect Allwyn to begin investing more in social gaming, such as Mixed Reality experiences where consumers can watch real-time draws and play at digital recreations of Good Cause locations. Innovative game mechanics could be another area of investment, with the firm having noted that 51% of Gen Z consumers prioritise innovation according to its report.
Regardless, with Gen Z becoming an increasingly important economic demographic, including to lotteries and gaming due to the majority now being over 18, responding to their preferences will be important to any company in this space.