International Game Technology (IGT) has secured an extended supplier contract with the UK National Lottery ahead of Allwyn taking control of the lottery next month.

Under the agreement, IGT will continue to supply the core lottery system for the National Lottery.

Allwyn will take control of the lottery on February 1 after receiving its fourth national lottery license in September 2022. It replaces Camelot, which has operated the lottery since its launch in 1994.

IGT said the contract extension was part of Allwyn’s transformation program for the lottery.

“We are pleased to continue to support the National Lottery’s operations and work with a number of other suppliers and Allwyn,” said Jay Gendron, chief operations officer for global lottery at IGT.

IGT drops legal challenge over National Lottery license

The extension comes after IGT this month withdrew its appeal against the decision to grant Allwyn the lottery license.

IGT pursued a claim for damages against the British Gambling Commission. The challenge was dealt a major blow in July 2023 when the Court of Appeal declared that IGT lacked legal standing to sue.

The tech giant appealed that ruling in September, but this month asked the court to dismiss the appeal. IGT will not pursue the claim for damages any further.

Camelot also sought a similar legal challenge to the decision to award the license to a rival company. The company applied for the license alongside Allwyn, The New Lottery Company, owned by health lottery operator Northern and Shell, and Italian company Sisal.

However, Camelot dropped its legal offer in September 2022. This resulted in Allwyn agreeing to waive any claims for costs or damages against Camelot.

Camelot’s legacy will live on after Allwyn takes over

Tensions between Camelot and Allwyn have eased significantly over the past 12 months following several takeover deals. This will ensure the old Camelot business becomes part of the wider Allwyn group.

Allwyn acquired Camelot UK, the current operator of the National Lottery, in February 2023. In addition, the company acquired US-based Camelot Lottery Solutions (Camelot LS), which was renamed Allwyn North America as a result of the purchase.

Allwyn has already noted the impact of both acquisitions in its first and third quarter results. In the third quarter, total consolidated revenue increased 98%, driven by the dual acquisition of Camelot.