The United Kingdom Gambling Commission is considering regulatory enforcement against Allwyn over its failure to deliver on pledges made during its successful bid for the fourth National Lottery license.
As reported by The Times, the gaming operator has blamed various issues on the lack of technical upgrades anticipated under its remit for the British lottery.
Allwyn detailed several legal challenges as well as the unforeseen “scale and complexity” of the changes as obstacles in the way of its program and a lack of implementation.
Now, the Gambling Commission could hit the license holder with enforcement action, with the issue currently under consideration.
Allwyn provided assurances that it was working to meet an increased fundraising target of £3.2 billion ($4.26b), but as of March this year, only £1.6b ($2.13b) was accounted for.
The operator’s CFO, Kenneth Morton, stated: “While Allwyn UK continues to progress as expeditiously as possible while prioritising contributions to good causes, after the end of the reporting period, a contractual milestone in the enabling agreement was not reached.”
“The Gambling Commission is reviewing what, if any, enforcement action might be taken against Allwyn UK in relation to that milestone.”
The timetable is more demanding operationally
The company cited a legal wrangle with Richard Desmond’s Northern & Shell over the fourth lottery license as one of the impeding factors.
Allwyn said: “This comprehensive technology transformation has significant scale and complexity, and is now taking place on a different timetable to that initially envisaged, owing in part to legal challenges against the Gambling Commission in relation to its fourth National Lottery license competition.”
It added, “The timetable is more demanding operationally, while the delivery of the transition also depends in part on third-party suppliers.”
On its pledges for the future of the National Lotttery and potential sanctions from the regulator, Allywn conveyed that it is: “investing more than £350m into the essential modernisation of The National Lottery, which hasn’t had a significant technology upgrade since 2009.”
“Our investment will help restore the magic to The National Lottery, but the shift from outdated systems is complex and requires robust testing.”
The firm also relayed that it will deliver the essential upgrades later this year, as it strives to complete its targets as soon as possible.
In March, Allwyn credited its digital channel as a significant driver of growth as the group’s revenues rose 12% year-on-year to $11.7b.
Image credit: Allwyn
