Allwyn's new lottery games delayed again, customers furious

In the UK, Allwyn, the operator of the National Lottery, has reported a decline in sales and earnings due to delays in launching new products and switching technology providers. Taking over the license in February 2024, the Czech-based group saw a 1% decrease in ticket sales year-on-year, primarily affected by lower performance in instant win games. The company's plans for new draw-based games have been postponed to 2025 as the transition to a new technology supplier has faced setbacks after an extension with the current provider, International Games Technology (IGT). The slowing development of new lottery products, particularly draw-based games hoped for introduction in 2024, will restrict funding for good causes during the initial years of Allwyn's decade-long license. The reduction of product offerings stems from challenges faced during the license handover, which included legal disputes involving IGT, that were eventually dropped when Allwyn acquired Camelot, the previous operator. Although Allwyn reported a robust performance across other global operations, the UK branch's 84% decline in underlying earnings represents a significant concern. During the third quarter, Allwyn reported UK earnings plunged to 7 million euros, attributing this drop to the new incentive and profitability mechanism that came with the new license. As Allwyn aims to improve its offerings, including the upgrade of old systems, capital expenditures rose to 54.4 million euros, indicating a push for necessary technological improvements. Looking forward, the delay in technological shifts has raised questions about the company's capacity to meet its financial obligations to charity, originally set to double funding for good causes. Ultimately, Allwyn's ability to execute its vision for transforming the National Lottery hinges on overcoming current technological issues, accelerating the rollout of new games, and navigating an uncertain economic environment characterized by consumer spending caution influenced by inflation, interest rates, and geopolitical factors. The firm remains optimistic about its long-term aspirations despite falling short of its initial targets.