Allwyn reported a 7% decline in UK gross gaming revenue to €942m (£814.2m) in Q1 2026, with underlying UK earnings falling 56% year-on-year to €4m (£3.5m) from €9m (£7.8m) in the same period last year, as the National Lottery operator absorbed the final costs of a £450m technology overhaul.
Technology Migration Weighs on UK Earnings
The operator, which took over the 10-year National Lottery licence from Camelot in February 2024, completed its technology transformation programme in Q1. The overhaul involved migrating 18 million player accounts and more than three billion historical transactions to a new digital platform, alongside updates to the lottery’s website, mobile applications, and retail partner terminals. Temporary service interruptions during the migration period suppressed GGR against the prior year.
UK capital expenditure fell 44% year-on-year to €18m (£15.6m) in Q1, down from €32m in the same quarter of 2025, as the investment phase concluded. Allwyn indicated that transformation-related operating costs included in EBITDA adjustments will not recur in subsequent quarters.
“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.”
A second factor in the decline was the prior-year comparative. Q1 2025 UK revenues had been boosted by a record EuroMillions jackpot, which drove unusually high player demand. Despite the GGR drop, UK net revenue increased 3% to €224m in the quarter, reflecting a different revenue recognition basis after cost deductions.
Product Overhaul Set for Summer 2026
With the technology platform now in place, Allwyn is preparing its most significant product changes to the draw-based Lotto game since the National Lottery’s launch in 1994. The company has also confirmed the introduction of Powerball, a UK-specific version of the US jackpot game, later this summer — the first new draw-based game added to the National Lottery since its inception. Powerball will be priced at £4 per line.
The new Lotto format will give players two chances to win the jackpot per £2 ticket, a change Allwyn projects will increase the number of annual Lotto millionaires from approximately 140 to around 345.
Group Results Supported by PrizePicks and Digital Growth
At group level, Allwyn’s Q1 performance was substantially stronger than the UK figures suggest. Consolidated net gaming revenue rose 24% year-on-year to €1.12bn, driven by the first-time consolidation of PrizePicks following the acquisition’s completion in early Q1. Excluding PrizePicks, higher gaming taxes in Austria, and start-up losses in Slovakia, underlying group adjusted EBITDA growth was 11%.
Group adjusted EBITDA increased 24% to €443m, with margin expanding to 36.8% from 36.1% in Q1 2025. Online net gaming revenue jumped 68% to €540m, representing 48% of total net gaming revenue — up 12 percentage points year-on-year. North America posted the sharpest growth, with total revenue up 408% to €305m, entirely attributable to PrizePicks’ inclusion.
Continental Europe GGR reached €1.18bn, up 7% from €1.1bn in Q1 2025. Allwyn completed its merger with OPAP in March 2026 to form the second-largest listed lottery company globally. Betano, in which Allwyn holds a 36.75% stake through the OPAP merger, generated €788m in total quarterly revenue, up 27% year-on-year, contributing €60m in income to Allwyn — a 43% increase.
CEO Robert Chvátal announced a €150m share buyback programme alongside the Q1 results. The company’s full-year 2026 outlook targets net revenue growth in the mid-to-high 20% range and an adjusted EBITDA margin of 37%.
Recovery Phase Begins
For operators and investors tracking Allwyn’s UK trajectory, Q1 2026 represents the trough of the transformation cost cycle rather than a structural deterioration. The Powerball launch and the Lotto game overhaul will be the first commercial tests of whether the £450m infrastructure investment translates into GGR recovery. The UKGC will be watching closely: Allwyn’s long-term licence commitment includes a target to double weekly Good Causes contributions from £30m to £60m by the end of the 10-year term — a goal that requires sustained top-line growth.
For context on UK regulatory expectations affecting lottery and gaming operators, see the UK’s confirmed gambling tax increases and TGE’s Financial Reports coverage.
Source: Allwyn AG
