Allwyn Set To Double Budget For National Lottery IT Project to £500m

The UK’s National Lottery operator is reportedly set to spend about double what it had originally budgeted for on a technical upgrade.

Allwyn International is on course to spend around £500 million in an attempt to overhaul the National Lottery’s IT systems, having initially planned to spend £250 million on the project when it took over the running of the lottery in February 2024.

Allwyn replaced Camelot, which had operated the National Lottery since its inception in 1994.

The upgrade was scheduled to be in place when Allwyn stepped in to take the place of Camelot. The project ran into delays however after supplier IGT challenged it in the High Court. This claim was subsequently dismissed.

Allwyn under pressure

This follows reports in June suggesting Allwyn was under intense pressure from the Commission following delays to plans to modernise the lottery, including improvements to its 43,500 terminals. A major systems update took place in the summer, when the National Lottery’s website went down for 34 hours.

When Allwyn was announced as the preferred bidder by British regulator the Gambling Commission, Allwyn was said to have “committed to investment in the National Lottery that is expected to deliver growth and innovation across the National Lottery’s products and channels, resulting in increased contributions to good causes, subject to the protection of participants and propriety.”

When bidding for the contract, Allwyn pledged to more than double charitable donations from almost £18 billion under Camelot to £38 billion; Allwyn’s contract runs for 10 years, so this averages out at £3.8 billion per year.

These projections were later reduced, with Allwyn instead agreeing to double the weekly returns to good causes from £30 million to £60 million; about £3 billion per year.

Increased investment defence

According to The Telegraph, the National Lottery has projected revenue of £84 billion across the 10-year association with Allwyn, which would be some way off an initial projection of £152 billion.

A spokesman for Allwyn is quoted as saying:

“We have invested significant sums in the transformation of the National Lottery. Without this, it would still be reliant on technology last upgraded in 2009.

“Our transformation will gather momentum in 2026, enabling us to deliver on our plans to offer more engaging ways to play and to raise more money for good causes. We remain confident of our goal of doubling funding for good causes to £60 million a week.”

OPAP merger awaits

Allwyn’s resources to improve the National Lottery could be improved in the coming months when its merger with Greek operator OPAP completes.

The merger was announced in October, in a plan to create the second-largest entertainment company in the world, valued at €16 billion (£13.89 billion). It is expected to complete in the first half of 2026.

Allwyn’s majority shareholder is KKCG, which is owned by Czech billionaire Karel Komarek. Aside from its agreement with the Gambling Commission, Allwyn operates lottery contracts in Czechia, Italy, Austria, Greece and Cyprus, as well as Illinois and Michigan in the US.

A legal challenge

Following Allwyn’s successful bid for the National Lottery contract, media mogul Richard Desmond has attempted to sue the Gambling Commission for £1.3 billion via his company Northern & Shell and The New Lottery Company (TNLC), alleging “manifest errors” in the bidding process.

Sources close to Desmond have suggested he was taken along in the process under false pretences, with the outcome already being pre-determined. Desmond’s lawyers claim he wasted £17.5 million in the process.

The Commission has argued Desmond’s bid scored “extremely badly” in the competition process. A judge is expected to rule on the case in January.