‘Botched’ UK National Lottery Tech Overhaul Means Charities Could Lose Out

Posted on: November 13, 2024, 08:23h. 

Last updated on: November 13, 2024, 10:02h.

Philip Conneller @casinoorgphilc Read More
Expertise: Gaming Business, Regulation, Tribal Gaming.

The implementation of a tech overhaul by the new UK lottery operator, Allwyn Entertainment, has been beset by delays and has proven so problematic it’s “like trying to stick a Microsoft system on top of an Apple computer,” The Daily Telegraph reports.

UK Lottery, National Lottery, Allwyn Entertainment, charity donations
A UK National lottery retailer takes part in Allwyn’s trial of a new type of ticket terminal in April 2024. Meanwhile, Allwyn’s overhaul of legacy technology systems isn’t going smoothly. (Image: Allwyn Entertainment)

Now, there are concerns that the Czech lottery giant, formerly known as Sazka, will be unable to meet its commitment to charitable causes as a result.

Allwyn won the estimated $80 billion (US$100 billion) tender, one of the UK’s biggest public sector contracts, largely because it pledged to raise double the amount of its predecessor, Camelot, for good causes. Its bid promised £38 billion (US$48 billion) for good causes over the next 10 years, donating $3.8 billion each year.

The lottery is one of the largest funders of charitable organizations in the UK, contributing to sports, heritage, and other good causes.

Legal Delays

It had been hoped the tech upgrade would be in place in February when Allwyn officially took over the reins from Camelot, but the transition was delayed by a legal challenge from International Games Technology (IGT), Camelot’s technology provider.

Camelot operated the National Lottery in partnership with IGT since its 1994 launch. Both companies sued the UK Gambling Commission (UKGC) after it awarded Allwyn the tender, claiming the bidding process was flawed.

Camelot dropped the suit after Allwyn acquired the company in February 2023 for an undisclosed amount. The IGT suit was later dismissed for lack of standing.

Having missed several target dates for the implementation of the new technology, Allwyn is working toward a new deadline of next February, according to Daily Telegraph sources. But it could be forced to halt the upgrade until the summer of 2025 or later, the sources said.

Playing Catch Up

Charitable contributions are expected to be several hundred million pounds short of targets in each of Allwyn’s first two years. The company has said it will make this up over its 10-year tenure.

We are investing more than £350 million in the biggest technology upgrade the National Lottery has ever had, and we are working towards switching over from the existing legacy systems – holding 30 years of data – to our new modern platform,” an Allwyn spokesperson told the Telegraph.

“Once it is live, we will be able to transform the way customers play the National Lottery and crucially, drive even more returns to good causes,” Allywn added.