Allwyn International, the newly appointed operator of the UK National Lottery, has reported a decrease in both sales and profits, primarily due to a lack of innovative products and technology delays.

Since acquiring the National Lottery license on February 1, the company has seen ticket sales in the UK drop by 1 percent on a constant currency basis for the quarter ending in September, with instant-win lottery games performing particularly poorly.

Allwyn explained that the current sales figures are affected by the limited development of products and channels at this early stage of their license period. The introduction of new draw-based games faced delays following a contentious handover of the license.

The Gambling Commission’s decision in March 2022 to grant the license to Allwyn, which is backed by Czech billionaire Karel Komarek, led to extensive legal disputes from competitors, particularly Camelot, which had managed the National Lottery since its launch in 1994.

Though Camelot, controlled by the Ontario Teachers’ Pension Plan, later rescinded its legal challenge, Allwyn’s acquisition of Camelot in February 2023 was also complicated by IGT, Camelot’s technology partner, who sought compensation but eventually withdrew their claims.

Allwyn’s UK segment generated revenues of €980.9 million in the recent quarter, marking a 3 percent increase compared to the previous year, although adjusted profits plummeted 84 percent to €7 million. The company attributed this steep decline to a “new incentive and profitability mechanism” that accompanied the license transfer.

Since its launch, the National Lottery has created over 7,200 millionaires and contributed more than £49 billion to charitable causes, supporting cultural initiatives such as The Globe Theatre and iconic artworks, as well as aiding British filmmakers and athletes in achieving Olympic success.

Across its broader portfolio, which includes lottery operations in various European countries, Allwyn reported a 12 percent increase in adjusted profits to €410.8 million for the third quarter, with total revenues growing by 7 percent to €2.14 billion. The company indicated that demand remained strong globally, despite a general decrease in consumer spending.

Allwyn noted that the modest impact from current economic challenges is supported by the low price point of its offerings and a high number of regular customers.

CEO Robert Chvátal highlighted the company’s exceptional performance in Greece and Cyprus, where adjusted profits surged by 26 percent to €213.4 million.