Camelot, the owner of the Ontario Teachers’ Pension Fund (OTPP), has reduced its participation in the lottery space and not always by choice. Lately, it has lost its concession to Allwyn for the UK’s National Lottery and has revealed its intention to withdraw from Ireland as well. Allwyn has confirmed that it is ready to contend for the rights.
Irish lottery players are now making their picks as Camelot has offered to give up its stake. Allwyn, Europe’s largest growing lottery operator, has instantly moved to acquire the financing needed to bid. Reports from the Financial Times suggest that it might have reached out to several banking institutions, such as UBS, in March and possibly sealed a deal. However, Allwyn has stayed mum on the negotiations.
The competition to acquire the license, which Camelot has held since 2014, will be fierce. Allwyn will have to go against a number of companies that are also keen on the chance, including Australia’s Lottery Corporation, France’s Française des Jeux, International Game Technology, among others. But Allwyn holds a trump card that could possibly sway regulators to its favor. It already has control over online draws in Ireland through its Camelot Lottery Solutions Group (Camelot LS) subsidiary.
In December, Allwyn announced its acquisition of Camelot LS, which was finalized last month. Among its assets is the lottery technology division, which could give Allwyn the advantage over its opponents. Other operators may need to partner up with a tech provider in order to manage PLI’s operations in the nation; however, Allwyn is one move ahead of them by having already secured the technology.
A decision is expected to be made by the end of summer to determine the winner. The Irish National Lottery was launched in 1987 and has generated over €5.8 billion (US$6.34 billion) in sales since then. It offers a variety of games, such as Lotto, EuroMillions, Daily Million and Telly Bingo, and the proceeds are used to fund good causes in the country, including sports, arts, heritage and community projects. It also provides employment for more than 200 individuals at PLI.
Allwyn’s endeavor to take over the Irish National Lottery has aroused some controversy, with some people worrying that the company is not Irish-owned, as well as that it may not be as dedicated to supporting good causes in Ireland as PLI. Nevertheless, Allwyn has stated its commitment to operating the lottery responsibly and transparently, and that it will continue to support beneficial causes in the country. The company has promised to invest in the lottery and implement new games and technologies to improve the player experience.
