Allwyn Reports UK Lottery Sales Decline

Allwyn posted second-quarter results showing group net revenue of €1.25 billion, up 27% year on year, while lottery net revenue slipped 2% to €498 million. The UK National Lottery recorded weaker ticket sales against a strong Euro Millions comparison period, even as operator profitability improved after a completed technology overhaul.

Key Takeaways

• UK lottery GGR fell about 14–16% to €914 million in the quarter to 30 June, while reported UK net revenue rose 2% to €236 million.
• Contributions to good causes and gaming taxes in the UK dropped to €678 million from €859 million a year earlier.
• Adjusted EBITDA in the UK jumped from €6 million to €23 million after Allwyn finished its National Lottery systems migration.

UK Sales Soften Amid Weaker Jackpots

Allwyn AG released preliminary unaudited figures for the three months ended 30 June 2026. Headline growth was driven largely by the January consolidation of Prize Picks and by sports betting and iGaming. Lottery remained the group’s largest product line but was held back by less favorable jackpot cycles than in Q2 2025, especially in continental Europe, where lottery revenue fell 5% to €262 million. UK lottery net revenue was more resilient at €236 million.

The UK picture is more mixed when measured on sales. Allwyn said UK revenues of €914 million were down 14% on the same quarter a year earlier. The operator attributed the drop to a tougher Euro Millions rollover comparison and to a major technology upgrade that took the National Lottery website and apps offline for about 24 hours. That program, described as a multi-hundred-million-pound investment, migrated millions of player records and retail systems onto new platforms.

Margin Recovery and Product Investment

Capital expenditure in the UK subsequently fell sharply, and Allwyn said the completed transformation underpinned the rebound in UK adjusted EBITDA. The sales dip lands against a sensitive funding backdrop. UK Gambling Commission data earlier showed transfers to good causes at an eight-year low in the first quarter of 2026. The government opened a public review of the National Lottery funding model in July. Allwyn still points to product investment, including new or enhanced draw games in Austria, the Czech Republic and the United Kingdom. The group said the UK is the first operator outside the United States to offer Powerball, a move intended to enlarge jackpot pools and support longer-term sales. Group adjusted EBITDA rose 29% to €458 million. Organic net revenue growth, excluding Prize Picks and Austrian tax effects, was 5%.

For lottery stakeholders, the quarter underlines a familiar cycle: jackpot calendars still dominate short-term sales, while digital platforms and cost discipline now determine whether operators can protect returns to public beneficiaries when draws cool.

Sources https://www.allwyn.com/investors-news/q2-2026-preliminary-unaudited-financial-results https://igamingbusiness.com/finance/allwyn-q2-net-revenue-surges-prizepicks-acquisition/