Allwyn could face potential financial penalties after UKGC investigation into National Lottery

As reported by The Times, Allwyn had promised a number of technical upgrades as a part of its campaign to inherit the multi-billion-pound UK National Lottery contract from Camelot, which the report states it has failed to deliver.  

Allwyn have cited various legal challenges, alongside the unforeseen ‘scale and complexity’ of the changes, which has led to a delay in their implementation. 

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The UKGC may be looking to enforce action against the company, as the operator made several assurances that they would increase fundraising to a revised target of £3.2billion. However, it was reported in March that only £1.6bn had been raised for goodwill causes. 

Speaking on these developments, Allwyn CFO Kenneth Morton said: “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.”   

Another inclusion in the report was the commentary on the rising costs of delivering technology changes across the UK National Lottery, including the switch from IGT to Scientific Games as a third-party partner. 

While progress has been slow, Allwyn has cited the legal battle with Richard Desmond’s Northern & Shell over the fourth lottery license as a reason for hampered progress. 

Allwyn stated: "This comprehensive technology transformation has significant scale and complexity, and is now taking place on a different timetable to that initially envisaged, owing in part to legal challenges against the Gambling Commission in relation to its fourth National Lottery license competition. 

"The timetable is more demanding operationally, while the delivery of the transition also depends in part on third-party suppliers." 

Speaking on any potential enforcement, a Gambling Commission spokesperson said: “Where the Gambling Commission decides to commence enforcement action, the process is investigative in nature. We do not usually talk about individual cases. We may publish information about enforcement cases once they are complete." 

Offering a general response, a spokeswoman for Allwyn UK said: "Allwyn is investing more than £350m into the essential modernisation of The National Lottery, which hasn't had a significant technology upgrade since 2009. 

"Our investment will help restore the magic to The National Lottery, but the shift from outdated systems is complex and requires robust testing. 

"We will deliver these essential upgrades over the coming year. We are working at pace to complete this transformation as soon as possible." 

This news comes at a surprising time, where Allwyn has received recognition from the European Lotteries and World Lottery Association, for their efforts in responsible gambling initiatives.