National Lottery operator Allwyn has reported a decline in UK sales and earnings for the first quarter of 2026, but the company views the completion of its extensive technology upgrade as a pivotal moment for its British operations.
Financial Performance and Challenges
Allwyn, which assumed the 10-year licence to operate the National Lottery from Camelot in 2024, saw its UK gross gaming revenues (GGR) drop by 7% to 942 million euros (£814.2 million) in the first three months of the year. Underlying earnings in the UK more than halved, falling from nine million euros (£7.8 million) to four million euros (£3.5 million) compared to the same period last year.
The company attributed the decline partly to tough comparatives with the previous year, when a record EuroMillions jackpot boosted demand. Additionally, costs associated with transitioning to a new online gaming platform following the recent technological overhaul weighed on performance.
Major Technology Upgrade Completed
Allwyn finalised a substantial £450 million technology upgrade to the lottery system during the first quarter. This involved migrating 18 million player records and over three billion historical transactions from legacy platforms to new systems. The upgrade also included updates to the lottery website and mobile applications, as well as a transformation of the technology used by retail partners.
The completion of this overhaul sets the stage for the most significant changes to the draw-based Lotto game since its inception in 1994. This summer, Allwyn will introduce the first new draw-based game in the National Lottery's history: a UK-specific version of the world's largest jackpot game, Powerball.
New Games and Innovations
Allwyn stated: "The completion of the transformation enables the rollout of new commercial initiatives in the United Kingdom, completes the incurrence of transformation-related costs and initiates the recovery phase for these costs. It therefore marks an important inflection point in the financial profile of the business."
The new Lotto format will launch this month, offering players two chances to win for every £2 ticket in its main draw for the first time. This change, effective from June 7, is expected to more than double the number of Lotto millionaires, increasing from approximately 140 per year to around 345.
Later in the summer, the Powerball launch will allow UK players to pay £4 per line to compete with their US counterparts in the world's largest jackpot game. Allwyn indicated that further National Lottery innovations are on the horizon, stating: "We continue to progress the development and regulatory approval of additional product innovations."
Group Performance and Merger
The wider Allwyn group, headquartered in Switzerland and operating lotteries across the UK, Europe, and North America, reported a 24% increase in underlying earnings to 443 million euros (£383 million) for the first quarter, with net sales rising by 21%.
Allwyn recently completed a merger with Greek firm OPAP, creating a global listed gaming giant valued at approximately 16 billion euros (£13.8 billion). The combined group now has a presence on the stock market through OPAP's Athens listing, with plans to pursue an additional listing in either London or New York. Allwyn previously held a near-52% controlling stake in Athens-listed OPAP before the all-share deal.
Robert Chvatal, Allwyn chief executive, commented: "I'm immensely proud of this transformative quarter, during which we have brought together two fantastic businesses to create a scaled global leader in gaming entertainment."
