- Legal States
Angel Hristov October 31, 2022 3 min read
Allwyn Eyes Acquisition of Camelot UK’s Business
Czech lottery giant Allwyn Entertainment confirmed that it is in talks with Camelot for the acquisition of the latter’s UK business. Allwyn, which was selected as the next National Lottery operator, is bullish on consolidating power in the British market.
Allwyn Wants to Speed Things Up
Earlier this year, the United Kingdom’s Gambling Commission named Allwyn as the next National Lottery operator. Camelot, which feared for its future, filed a lawsuit, claiming that the UKGC shouldn’t have picked Allwyn as the next operator. This led to delays in Allwyn’s official licensing as the holder of the fourth National Lottery license. Despite the fierce resistance on the incumbent operator’s side, the Czech company eventually prevailed and is now preparing to take over the Brits’ favorite lottery game.
Amid Allwyn’s expansion in the United Kingdom, rumors suggested that the Czech giant is now seeking to acquire its competitor’s business. Sources claimed that Allwyn has put forward around $116 million to buy out Camelot UK.
If Allwyn proceeds with this deal, it would be able to immediately take over the National Lottery, instead of waiting until February 2024, when Camelot’s term is set to expire.
The Czech Operator Confirmed the Rumors
Soon after the rumors began, Allwyn released an official statement to confirm its intentions. The company said that it is indeed eyeing an acquisition deal with Camelot UK. However, the lottery company added that even if it comes to an agreement with Camelot, the deal would be subject to regulatory approvals.
Allwyn explained that it shares a vision with Camelot as both seek to best serve the interest of the National Lottery’s stakeholders. The Czech company noted that one of these interests is the good causes fund and the well-being of the Camelot employees.
Camelot, intended to launch a claim for compensation, following the crowning of Allwyn as the next National Lottery operator. However, the former party will in all likelihood withdraw its claim if the Czech company proceeds with the takeover. Rumors also claim that an acquisition deal will guarantee future cooperation between the seasoned lottery operator and Allwyn.
In other news, Allwyn recently reinforced its UK team with new members that would support the National Lottery transition. The company named the experienced Sharon Doherty and Victoria McKenzie-Gould as non-executive directors, hoping to continue its forward momentum in the United Kingdom.
A month ago, Allwyn announced that its deal with the special acquisition company Cohn Robbins is off because of the current market conditions.