Allwyn Overhauls UK National Lottery with Powerball Launch and Lotto Revamp Amid Legal Turmoil

Key facts

• Allwyn, owned by Czech billionaire Karel Komárek, won the 10-year licence in 2022 and took over in 2024.
• UK Powerball tickets will cost £4 per line, with jackpots shared with US players and paid over 30 years.
• Lotto changes from June 7 give two chances to win per £2 ticket, expected to create 345 millionaires annually, up from 140.
• Richard Desmond's claim for up to £1.3bn in damages was dismissed by Mrs Justice Smith on Friday.
• Desmond's legal costs were estimated at £55m by May last year; he rejected a £10m settlement offer.
• Allwyn completed a £450m tech upgrade, moving 18 million player records and 3 billion transactions.
• Total National Lottery sales reached £8.1bn in 2025, up 3.5% year-on-year.
• Allwyn aims to double weekly returns to good causes from £30m to £60m by 2034.

A New Era for Britain’s Biggest Public Sector Contract

The National Lottery is undergoing its most radical transformation since its inception in 1994, as operator Allwyn prepares to launch a UK version of America’s Powerball and overhaul the flagship Lotto game. The moves come against a backdrop of legal rancour: media tycoon Richard Desmond has vowed to appeal after a high court judge dismissed his claim for up to £1.3bn in damages over the licence award. Allwyn, a vehicle ultimately owned by Czech billionaire Karel Komárek, secured the 10-year licence in 2022 and began running the lottery in 2024, replacing long-time operator Camelot. The company has since invested £450m in a major technology upgrade, migrating 18 million player records and more than three billion historical transactions to new platforms.

Powerball Brings Billion-Pound Jackpots to UK Players

Allwyn has reached an agreement with the Multi-State Lottery Association (MUSL) in the US to offer Powerball in Britain, pending final regulatory approval. UK players will pay £4 per line to compete for a shared jackpot that can exceed £1bn, though winnings will be paid out over 30 years. The new game, set to launch later this summer, will see over 30% of ticket prices go to good causes, which Allwyn estimates will generate an extra £1bn in the first five years. Chief executive Andria Vidler said the addition of Powerball and other new games would help the company reach its goal of doubling weekly returns to good causes from £30m to £60m by 2034.

Lotto Revamp Doubles Millionaire-Making Capacity

From June 7, the UK’s core Lotto draw will give players two chances to win on every £2 ticket, the biggest change in the game’s history. The first two-round draw takes place on June 10, with draws continuing every Wednesday and Saturday at around 8pm. Allwyn expects the change to more than double the number of Lotto millionaires, from about 140 a year to roughly 345. The overhaul follows the completion of the £450m tech upgrade, which also transformed the technology used by retail partners.

Desmond’s £1.3bn Lawship Dismissed in Scathing Judgment

On Friday, Mrs Justice Smith dismissed the claim brought by companies owned by Richard Desmond, former proprietor of the Daily Express and Channel 5, against the Gambling Commission. Desmond’s Northern & Shell investment company and his lottery bid vehicle, the New Lottery Company, had argued that the commission made “manifest errors” in awarding the licence to Allwyn. The judge reserved particular criticism for “inexcusable” failings by Desmond’s legal team. She wrote that the claimants “failed to make out any case of manifest error” and that the competition “reached a lawful outcome”. Desmond’s costs were estimated at £55m by May last year, though sources close to him said the figure was significantly lower.

A Tortuous Legal Battle with High Stakes

Desmond launched his legal challenge in 2022, arguing that the commission’s mistakes caused him to incur £17.5m in needless bid costs. He also sought up to £1.3bn in damages to reflect hypothetical lost earnings from running the lottery. At one stage, he rejected a £10m settlement offer. A spokesperson for Northern & Shell said: “They won. We lost. We appeal. It’s not over.” Desmond, a former Tory donor and Brexit backer who invoked EU law in his suit, claimed the regulator presided over a flawed process that should have been rerun. The judge dismissed all aspects of the claim, including allegations that previous licence holder Camelot should have been disqualified for incumbency advantage and that Allwyn should have been disqualified for conflict of interest.

Sales Growth and the Fight Against Betting on Draws

total National Lottery sales of £8.1bn in 2025, up 3.5% on the previous year. The company has also clashed with bookmakers over a practice that allows punters to bet on specific numbers being drawn in the lottery. Allwyn argues that this deprives good causes of €81m in potential revenue and has called for a ban, noting that the practice is not permitted in 25 of 27 EU member states. Sharon Byrne, chairperson of the Irish Bookmakers Association, defended the practice, saying many customers bet on numbers with personal significance, such as children’s birthdays. She said the odds offered – typically 33/1 on two out of seven numbers – give punters a better chance of a return than the actual lottery. “Their business model is very different,” she said of the National Lottery. “A bookmaker could actually lose money.”

Outlook: A Summer of Change and Continued Uncertainty

With the Powerball launch and Lotto revamp, Allwyn is betting that new games will expand its player base and boost returns for good causes. Vidler said the company is “delivering on our promise to bring more games, more entertainment and more innovation”. But the legal saga is far from over. Desmond’s vow to appeal ensures that the licence award will remain under judicial scrutiny, even as Allwyn implements its ambitious plans. The outcome of the appeal could have significant implications for the UK’s largest public sector contract, worth £6.5bn over its term.

The bottom line

• Allwyn is launching UK Powerball and revamping Lotto, aiming to double millionaire creation and raise £1bn extra for good causes in five years.
• Richard Desmond’s £1.3bn damages claim was dismissed; he has vowed to appeal, prolonging legal uncertainty.
• The £450m tech upgrade completed by Allwyn underpins the new games and modernises the lottery’s infrastructure.
• Total National Lottery sales rose 3.5% to £8.1bn in 2025, supporting Allwyn’s goal of doubling weekly good-cause returns to £60m by 2034.
• Allwyn is pushing for a ban on bookmakers taking bets on lottery draws, citing €81m in lost revenue for good causes.
• The legal battle and operational overhaul together mark the most turbulent period for the National Lottery since its launch.