Allwyn Faces Gambling Commission Scrutiny Over Missed Contractual Milestones and Fundraising Shortfall

Allwyn, the UK’s current National Lottery operator, is under review by the UK Gambling Commission following its failure to meet several key contractual commitments tied to its takeover of the lottery franchise from previous operator Camelot, according to a report from The Times.

The company had won the multi-billion-pound Fourth National Lottery Licence after a high-profile bidding process last year, during which it assured regulators and the public of substantial technical upgrades. However, the Commission is now examining the operator’s failure to implement those promised changes. The delays have reportedly been blamed on multiple legal disputes and what Allwyn describes as the unexpected “scale and complexity” of the required improvements.

Additionally, concerns have emerged regarding Allwyn’s commitment to boost fundraising for charitable causes. The operator had pledged to generate £3.2 billion ($4.3 billion) for good causes under the terms of the new licence. But as of March this year, only £1.6 billion had been raised—just half of the stated target. As a result, the Gambling Commission is said to be actively considering enforcement measures.

Addressing these issues, Allwyn’s Chief Financial Officer Kenneth Morton stated: “While Allwyn UK continues to progress as expeditiously as possible while prioritising contributions to good causes, after the end of the reporting period a contractual milestone in the enabling agreement was not reached. The Gambling Commission is reviewing what, if any, enforcement action might be taken against Allwyn UK in relation to that milestone.”

Allwyn’s troubles are compounded by an ongoing legal battle with media tycoon Richard Desmond, who has brought a lawsuit against both Allwyn and the Gambling Commission over their handling of the Fourth National Lottery Licence. Desmond’s legal challenge adds another layer of pressure on the embattled operator.

Despite these hurdles, Allwyn recently published its financial results for the fiscal year 2024, revealing a 12% year-on-year revenue increase, bringing total group earnings to €8.79 billion ($9.97 billion). The company has also received certifications from both the European Lotteries and the World Lottery Association in recognition of its recent responsible gambling initiatives.

By fLEXI tEAM