UK Regulator Tightens Grip on Allwyn over Lottery Upgrade Delays

The UK Gambling Commission (UKGC) initiated enforcement action against National Lottery operator Allwyn due to the slow implementation of core modernization commitments promised as part of its licence agreement. While upcoming updates indicate that Allwyn remains committed to its obligations, the regulator remains compelled to investigate contractual violations.

Upgrades Are Materializing Slower than Expected

Allwyn, which began operating the National Lottery officially in February 2024 after securing the licence in 2022 and buying out previous operator Camelot UK, faces regulatory scrutiny less than two years into its term. In its newest annual report, the UKGC confirmed that enforcement action was underway after the company missed a key delivery milestone related to the full roll-out of its proposed upgrades.

There have been delays in Allwyn achieving full implementation. As a result, the Commission has initiated enforcement action, which is ongoing.

UKGC statement

The disagreement revolves around a missed February 2025 deadline. Under the terms of the Fourth National Lottery Licence, Allwyn committed to finishing a comprehensive modernization of systems, infrastructure, and retail operations by that time. However, the operator appears to have underestimated the challenge, justifying delays with the need to move 30 years of legacy data to its new platforms.

The proposed updates include a new website and mobile app, upgraded in-store terminals through a deal with Vodafone, and redesigned lottery equipment and signage across more than 43,000 retail outlets. While Allwyn is making some progress, including a significant systems upgrade on August 2, the regulator remains critical of the slow pace of the updates.

Allwyn Remains Committed to Enhancing the UK Lottery Experience

According to the Commission, Allwyn failed to meet the expected timeline, raising concerns regarding Allwyn’s ability to deliver on its original pitch, which helped it win the lucrative contract to operate the National Lottery through 2034. In a separate statement, Allwyn admitted it had missed a milestone detailed in the Enabling Agreement and was fully cooperating with the Commission’s investigation.

Allwyn has pledged to invest GBP 350 million ($462 million) into the National Lottery’s upgrade. Discussing the scheduled August updates, the operator described them as “long overdue,” noting the system had not received a significant refresh since 2009. Allwyn hopes such overhauls will deliver a more robust and engaging lottery experience for players and retailers, bolstering overall participation.

Despite Allwyn’s optimism, the recent regulatory crackdown could have financial and reputational implications for Allwyn, depending on the conclusion of the investigation. While the UKGC has made it clear that this probe is separate from day-to-day oversight, its outcome may impact future interactions with the company. With regulatory patience wearing thin, Allwyn must demonstrate that it can provide both innovation and accountability.