The UK National Lottery operator Allwyn is facing an official investigation by the UK Gambling Commission for failing to fulfill some contractual obligations related to taking over lottery operations. According to The Times, the company had promised to carry out several technical system upgrades to smoothly replace the long-term operator Camelot, but some commitments were not met on time.
Allwyn explained that the implementation of technical reforms was far more complex than anticipated and faced legal challenges, leading to project delays. This delay is causing dissatisfaction among regulators.
More worryingly, after taking over operations, Allwyn promised to increase annual charitable fundraising to £3.2 billion (about $4.3 billion), but as of March this year, the actual fundraising amount was only £1.6 billion, less than half of the target. This gap has led the Gambling Commission to consider whether to take enforcement action against the company.
Allwyn UK's Chief Financial Officer Kenneth Morton responded, "We are doing our utmost to promote business development and always prioritize charitable fundraising. However, a key milestone stipulated in the contract has not been completed by the end of the reporting period, and the Gambling Commission is currently reviewing whether enforcement measures need to be taken."
Meanwhile, Allwyn is also embroiled in a legal battle. Media mogul Richard Desmond is suing Allwyn and the UK Gambling Commission over the awarding process of the fourth National Lottery licence.
Despite facing challenges, Allwyn has shown robust financial performance. Its latest financial report shows that the group's total revenue for the fiscal year 2024 reached €8.79 billion (about $9.97 billion), a 12% increase year-on-year. Additionally, the company has actively promoted responsible gambling measures in recent years and has received dual certification from the European Lotteries Association and the World Lottery Association.
