During the initial three months of the 2022-23 financial year, the British National Lottery generated a substantial sum of £422.9 million (which equates to €491.5 million or $488.4 million) for charitable endeavors.
Lottery ticket sales saw a slight increase of 0.5% when compared to the same period in the 2021-22 financial year. However, sales experienced a decline of 13.9% compared to the £491.3 million raised in the final quarter of the preceding financial year, and a more significant drop of 16.8% compared to the £5.085 million raised in the third quarter of the 2021-22 financial year.
According to the Gambling Commission, which released these figures, the primary reason for the sequential decrease in revenue was an 8.7% reduction in overall National Lottery sales compared to the prior quarter.
The Commission observed that sales declined for all lottery games except EuroMillions. Lotto ticket sales experienced a notable decrease of 15.9%, while scratchcard sales also fell by 11.4% in comparison to the preceding quarter.
It is noteworthy that the total amount of unclaimed prize money was £29 million lower than the previous quarter. This reduction was primarily attributed to the conclusion of certain scratchcard games in the fourth quarter of the 2021-22 financial year, which aligns with the typical annual cycle.
Since its inception in November 1994, the UK National Lottery has contributed over £46 billion to worthy causes, encompassing a wide range of areas such as sports, arts and heritage, health, education, and environmental initiatives.
The National Lottery Distribution Fund (NLDF) oversees the distribution of funds for beneficial causes, while the Gambling Commission ensures that lottery operators make accurate and timely payments to these worthy endeavors.
The UK National Lottery is on the verge of a significant shift in its management as Allwyn has officially been granted the fourth National Lottery permit in September. This signifies the commencement of the transition to the new operator.
Previously, in March, the Commission declared Allwyn as its favored candidate for the license, outperforming the incumbent operator Camelot, New Lottery Company, and Sisal.
Camelot and its technological partner IGT contested the decision in court, alleging that the regulatory body lacked transparency in its communication and that its employees “merited a reasonable explanation” regarding the non-renewal of their license.
This resulted in the High Court automatically suspending the license decision, but Camelot withdrew its challenge in September following media reports suggesting that a prolonged legal dispute could jeopardize funding for charitable causes, eliminating the final obstacle for Allwyn to secure the license.
Camelot stated its intention to pursue a separate claim for compensation, but this week, reports emerged indicating that Allwyn is engaged in “advanced” negotiations to acquire Camelot, casting uncertainty on the future of that claim.
Allwyn, a lottery operator, is reportedly in discussions with the Ontario Teachers’ Pension Plan (OTPP) to acquire Camelot, the UK’s lottery operator, in a transaction valued at approximately £100 million. The OTPP presently holds ownership of Camelot.
Sources indicate that an agreement could be finalized within the next few weeks, with Allwyn assuming control of all of Camelot’s operations in the UK, including the rights to manage the National Lottery. Camelot’s current operating term is set to expire in February 2024.
Allwyn has acknowledged the discussions in a statement, but emphasized that any agreement would be contingent upon regulatory approval.
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