National Lottery operator Allwyn has reported a 7 per cent decline in UK gross gaming revenues, which fell to 942 million euros (£814.2 million) in the first quarter of 2026. Underlying UK earnings halved to four million euros (£3.5 million), according to the company's latest financial results.
Reasons Behind the Decline
The drop in sales was attributed to challenging comparisons with the previous year, which included a record EuroMillions jackpot, as well as costs associated with a major £450 million technology upgrade. Allwyn completed this significant overhaul in Q1, which involved migrating 18 million player records and over three billion historical transactions. The upgrade also transformed the lottery's website, mobile apps, and retail partner technology.
New Lotto Format and Powerball Launch
This investment sets the stage for the biggest overhaul to the draw-based Lotto game since its launch in 1994. Starting from 7 June, a new format will offer two chances to win for every £2 ticket, a change expected to more than double the number of Lotto millionaires created each year. Additionally, the upgrade will enable the launch of the National Lottery’s first new draw-based game this summer: a UK-specific version of the global Powerball jackpot. This game will allow UK players to compete with their US counterparts for £4 per line.
Despite the temporary dip in sales, Allwyn remains optimistic about the future, with the new games expected to attract more players and boost revenues in the coming quarters.
