The UK National Lottery’s new manager, Allwyn, has teamed up with communications giant Vodafone to modernize the lottery’s technological foundation. This development comes as Allwyn also eyes the Irish lottery sector (details to follow).
Vodafone’s objective? To propel the UK lottery into the modern era with a seamless, mobile-centric approach while giving the current infrastructure a much-needed technological refresh. While embracing the digital realm, Allwyn hasn’t neglected the physical retailers that have been the lottery’s backbone. Vodafone will equip these vendors with digital skills development to keep them competitive.
The core of the agreement? Vodafone will house the lottery operations in its UK data facilities and furnish the crucial wide area network (WAN) to connect Allwyn’s locations.
Nick Gliddon, Vodafone UK’s leader, was direct: “We recognize the transformative potential of digital in enhancing enterprises and crafting exceptional client encounters. Frankly, the method of lottery ticket sales in local stores is outdated. It’s time for an update.”
Robert Chvátal, Allwyn UK’s temporary CEO, shared the view, stating, “This collaboration with Vodafone is a significant step, realizing the pledges we made during our bid for the fourth National Lottery permit. This isn’t merely a cosmetic change; it’s a complete reconstruction of the current technology, guaranteeing exciting advancements across the spectrum.”
The competition for the United Kingdom’s latest National Lottery permit was a fierce struggle between Allwyn and Camelot, the existing provider that had maintained the prior three licenses. Camelot, unwilling to relinquish control, initiated a legal dispute concerning the awarding procedure, aiming to postpone the transfer.
Despite their strongest attempts, Camelot eventually acknowledged loss and consented to transfer its UK lottery business to Allwyn. The purchase is projected to be concluded in February 2024.
However, Allwyn’s aspirations extend beyond the UK’s borders. They have also targeted the acquisition of a majority share in the Irish National Lottery, presently 80% controlled by the Ontario Teachers’ Pension Plan (OTPP) under a license valid until 2034. It appears OTPP might be amenable to a sale, and Allwyn is allegedly negotiating with Swiss financial institution UBS regarding a possible agreement. Naturally, they face competition – Scientific Games and Française des Jeux have also indicated interest in the Irish Lottery.