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Yahoo
3 days ago
- Business
- Yahoo
National Lottery to suffer 36-hour outage in rush to deliver botched tech update
The National Lottery will be plunged into a 36-hour blackout this summer as its new owner rushes to deliver a botched tech upgrade. Allwyn, which is controlled by Czech billionaire Karel Komarek, has warned retailers their National Lottery terminals will stop working for around 36 hours while systems are updated. In a statement to shop owners this week, Andria Vidler, the chief executive of Allwyn UK, said: 'Technical switchover will happen over one weekend this summer, and to enable the new systems to go live, National Lottery terminals will be inactive for approximately 36 hours.' Ms Vidler did not provide a date for the shutdown, but asked retailers for their 'help and diligence to ensure a seamless transition'. It is understood that the upgrade will begin at about 11pm on a Saturday night to reduce disruption and loss of earnings. The National Lottery does not trade overnight and no draw-based games take place on a Sunday. Allwyn has pledged to overhaul the National Lottery's estate of 43,500 terminals at a cost of £350m. The update is critical to the company's promise to double the lottery's contribution to good causes. However, the IT upgrade has been plagued by difficulties and delays. Bosses are now racing to launch the new system amid pressure from the Gambling Commission. The complex update was supposed to be in place when Allwyn took over the running of the National Lottery from Camelot in February last year. However, this was delayed after the existing provider, International Games Technology (IGT), challenged the move in the High Court. The rollout has also been delayed by a separate legal challenge mounted by Richard Desmond, who is suing the Gambling Commission after missing out on the 10-year licence. He has argued the bidding process was unfair and is seeking £200m in damages. The delays have fuelled concerns that Allwyn will fall short of its ambitious pledge to funnel more money to good causes. The operator originally promised to increase its charitable donations from £17.9bn to £38bn over the course of the licence – equivalent to about £3.8bn a year. But it has now watered down these targets by pledging to double returns by the end of its licence, from £30m to £60m a week – or less than £3.2bn a year. The Telegraph revealed earlier this year that the National Lottery is already facing a £2bn shortfall toward its charitable donation target in its maiden year. This summer's outage, first reported by Better Retailing magazine, is also likely to spark concerns among shopkeepers who make commission by selling lottery tickets. Andrew Goodacre, the chief executive of the British Independent Retailers Association, said: 'My opinion is that anything that disrupts the normal running of a shop is not welcome. 'We also have to hope that the proposed works go to plan and that any switch is restricted to 36 hours – I fear this may overrun. I would also like to think that the retailers would receive some form of compensation for lost business or inconvenience.' A spokesman for Allwyn said: 'Allwyn is investing over £350m into improving the operations and technology of The National Lottery. 'This change is critical – it will give us the springboard from which we can continue to improve the player and retailer experience and enable us to deliver on our ambitious plans to double returns to good causes from £30m to £60m a week by the end of the licence.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Telegraph
3 days ago
- Business
- Telegraph
National Lottery to suffer 36-hour outage in rush to deliver botched tech update
The National Lottery will be plunged into a 36-hour blackout this summer as its new owner rushes to deliver a botched tech upgrade. Allwyn, which is controlled by Czech billionaire Karel Komarek, has warned retailers their National Lottery terminals will stop working for around 36 hours while systems are updated. In a statement to shop owners this week, Andria Vidler, the chief executive of Allwyn UK, said: 'Technical switchover will happen over one weekend this summer, and to enable the new systems to go live, National Lottery terminals will be inactive for approximately 36 hours.' Ms Vidler did not provide a date for the shutdown, but asked retailers for their 'help and diligence to ensure a seamless transition'. It is understood that the upgrade will begin at about 11pm on a Saturday night to reduce disruption and loss of earnings. The National Lottery does not trade overnight and no draw-based games take place on a Sunday. Allwyn has pledged to overhaul the National Lottery's estate of 43,500 terminals at a cost of £350m. The update is critical to the company's promise to double the lottery's contribution to good causes. However, the IT upgrade has been plagued by difficulties and delays. Bosses are now racing to launch the new system amid pressure from the Gambling Commission. The complex update was supposed to be in place when Allwyn took over the running of the National Lottery from Camelot in February last year. However, this was delayed after the existing provider, International Games Technology (IGT), challenged the move in the High Court. The rollout has also been delayed by a separate legal challenge mounted by Richard Desmond, who is suing the Gambling Commission after missing out on the 10-year licence. He has argued the bidding process was unfair and is seeking £200m in damages. The delays have fuelled concerns that Allwyn will fall short of its ambitious pledge to funnel more money to good causes. The operator originally promised to increase its charitable donations from £17.9bn to £38bn over the course of the licence – equivalent to about £3.8bn a year. But it has now watered down these targets by pledging to double returns by the end of its licence, from £30m to £60m a week – or less than £3.2bn a year. The Telegraph revealed earlier this year that the National Lottery is already facing a £2bn shortfall toward its charitable donation target in its maiden year. This summer's outage, first reported by Better Retailing magazine, is also likely to spark concerns among shopkeepers who make commission by selling lottery tickets. Andrew Goodacre, the chief executive of the British Independent Retailers Association, said: 'My opinion is that anything that disrupts the normal running of a shop is not welcome. 'We also have to hope that the proposed works go to plan and that any switch is restricted to 36 hours – I fear this may overrun. I would also like to think that the retailers would receive some form of compensation for lost business or inconvenience.' A spokesman for Allwyn said: 'Allwyn is investing over £350m into improving the operations and technology of The National Lottery. 'This change is critical – it will give us the springboard from which we can continue to improve the player and retailer experience and enable us to deliver on our ambitious plans to double returns to good causes from £30m to £60m a week by the end of the licence.'
Telegraph
14-05-2025
- Business
- Telegraph
Richard Desmond faces £15m demand in High Court lottery row
Richard Desmond is facing a demand to put up a £15m bond as part of his acrimonious legal battle over the National Lottery. The Gambling Commission has asked the High Court to strike out Mr Desmond's case against it unless he pays the sum into the Court's bank account or puts his property interests on the line ahead of the trial. So-called 'Security for Costs Orders' require claimants – in this case Mr Desmond – to provide financial security to cover the defendant's legal costs if the claim fails. The instruments are used in instances where there is concern the claimant may not be able to afford the legal bill. If the billionaire fails to provide the necessary sum in cash, the Commission, together with lottery operator Allwyn, has requested a 'signed guarantee from Northern & Shell Properties Limited' – the entity that owns and manages Mr Desmond's property empire. Forcing the claimant to provide a signed guarantee, especially of a large fund like £15m, is rare, according to an industry source. A court hearing is scheduled for next week. It is the latest twist in an increasingly rancorous spat. Mr Desmond is suing the Gambling Commission for failing to award him the fourth National Lottery licence. The 10-year contract was instead handed to Allwyn, which is owned by Czech billionaire Karel Komarek. Mr Desmond has said he is seeking £200m in damages because he thinks the bidding process was unfair. The regulator estimates that the total legal bill for the case is likely to reach £30m, yet the last set of published accounts for Mr Desmond's Northern & Shell, which cover the period to the end of December 2023, show it sitting on cash of £20.8m. Sources close to Northern and Shell rejected the suggestion that Mr Desmond was unable to meet the legal costs of the case. 'There is more than enough for Northern and Shell to fight to the bitter end,' one source said. Another claimed that Mr Desmond's holding company had £300m of 'realisable assets' and dismissed the action as 'deflection' and an 'over-reaction'. The regulator was 'flying a kite', the same source said. A Commission spokesman said: 'We do not comment on ongoing legal proceedings.' Taxpayers to foot the bill If Mr Desmond wins the case, it is expected that taxpayers will foot the bill in one form or another. In 2022, Chris Philp, the then gambling minister, stated that the matter would be settled either with Treasury funds or from the money that the National Lottery sets aside for charitable causes. The Commission offered £10m of taxpayers' money to settle the case late last year but Mr Desmond rejected the proposal, setting the stage for a High Court showdown in the Autumn. Last week, the High Court ruled that Mr Desmond can use a cache of documents mistakenly handed over to his lawyers by the Commission's legal team at Hogan Lovells. Sa'ad Hossain KC, representing Northern & Shell, described the scale of the apparent error as 'unprecedented' and akin to a 'bombshell'. Allwyn, meanwhile, has suffered a series of setbacks since taking control of the lottery last year amid a costly and complex IT overhaul. The lottery is on course to generate around £1.6bn in donations for charitable causes in its maiden year under Allwyn, more than £2bn short of where returns were expected to be.
Telegraph
01-03-2025
- Business
- Telegraph
National Lottery facing £2bn charity shortfall
The new owner of the National Lottery is set to miss a key funding milestone, casting doubt on the ambitious pledges that were pivotal in the company being awarded the licence. According to Allwyn's own financial projections, the National Lottery is on course to generate around £1.6bn in donations for charitable causes in its maiden year – more than £2bn short of where returns were expected to be. Allwyn, which is owned by Czech billionaire Karel Komarek, originally promised to more than double donations from £17.9bn under predecessor Camelot to £38bn – equivalent to £3.8bn a year over the coming decade. The company later revised its projections, pledging to double returns to good causes by the end of its licence, from £30m to £60m a week – equivalent to nearly £3.2bn a year. It means Allwyn must generate an average of £4bn annually for the remainder of the licence if it is to fulfil its original undertakings, or £3.3bn a year to meet the amended target. Concerns about the lottery's faltering performance under Allwyn have been raised in the House of Lords as it struggles to complete a costly and complex IT overhaul. In a parliamentary debate earlier this month, Viscount Chandos asked gambling minister Baroness Twycross whether the Gambling Commission had been 'taken for a ride' by Allwyn during the bidding process. Allwyn's pledges were already looking 'fanciful now, to put it mildly', he told peers. His comments came after Baroness Twycross confirmed that donations would be in the region of £1.6bn in the first financial year of the fourth licence – an 11-month period from the start of the licence on 1 February to 31 December 2024. Allwyn has suffered repeated delays to a digital upgrade that it says is critical to plans for a raft of improvements to the lottery, including the introduction of new games expected to boost sales. The technology transfer was supposed to be in place when Allwyn took over the running of the lottery in February last year but, following a series of hold-ups, it may not be ready until February 2026 – the latest point at which it can be delivered under the terms of the licence. Senior MPs on the culture, media and sport select committee plan to question Allwyn bosses in the coming months as part of an inquiry that will scrutinise performance. However, Westminster sources say it could be delayed by legal action. Billionaire Richard Desmond launched a high court challenge in 2022 after Allwyn was awarded the licence over his firm Northern and Shell, owner of the Health Lottery, and the incumbent Camelot. A trial is due to go ahead in October after Desmond rejected a settlement offer, understood to be worth just a few million pounds, in December. A spokesman for Allwyn said: 'Allwyn is looking to restore the magic to The National Lottery and deliver responsible growth. We are investing £350m into our comprehensive plan to transform it. Never before has The National Lottery changed hands. 'Protecting and maintaining vital returns to good causes in our first year of operation is a success, and only the start of Allwyn's plans to double returns to good causes from £30m per week to £60m per week by the end of the 10-year licence period.'
Biz Bahrain
12-02-2025
- Business
- Biz Bahrain
Formula 1 welcomes Allwyn as new Official Partner
Formula 1 has today announced that it is welcoming leading global lottery operator Allwyn as a new Official Partner in a multi-year deal, beginning in 2025. The two organisations have huge global reach between them. Formula 1 welcomes 1.7bn viewers across the season and has 750 million fans and 96 million social media followers worldwide, while Allwyn's markets across the US and Europe encompass a population of 130 million adults. The partnership is an opportunity to introduce each brand's audience to one another, driving growth for both businesses in new markets. At the heart of the partnership is both brands' commitment to innovation, technology and driving positive change in the communities in which they operate and across wider society. Allwyn has a proven track record through its 300 corporate social responsibility (CSR) and sponsorship initiatives focused on sport, art and culture, from community fitness events to film festivals. Formula 1 also operates a range of local and global initiatives to improve communities and build a more inclusive sport. Formula 1 is also adopting pioneering solutions to reach its Net Zero by 2030 commitments and has a long history of developing technologies that are adopted by a range of industries from healthcare to automotive. The new relationship will give Allwyn the opportunity to utilise the sport's significant and evergrowing international fan base and platform to celebrate those making positive change, sharing inspiring stories on a global level. More information will be released on the initiatives in due course. tefano Domenicali, President & CEO of Formula 1, said: 'We are thrilled to welcome Allwyn as a new Official Partner. Our collaboration reflects our shared commitment to innovation and celebrating community. This partnership also provides new opportunities for both our organisations to connect with broader audiences around the world. We look forward to working together to create unique experiences and drive positive change together.' Karel Komarek, Allwyn Board Chair and Founder, said: 'We have ambitious plans for Allwyn to continue on its successful path of international growth, and this is a significant milestone on that journey. This investment marks a major moment in Allwyn's evolution, as we transform awareness of Allwyn on the global stage and underline the power of our lotteries to do good in the world.' Robert Chvátal, Allwyn CEO, said: 'Formula 1 is synonymous with excellence, high performance and innovation – principles at the heart of Allwyn's business. We're excited to begin this official partnership with Formula 1 to engage the sport's platform of a hugely passionate global fanbase and to champion positive community impact.'
