The operator of the UK National Lottery, Allwyn, reported a 14 percent decline in sales during the second quarter of 2026 compared to the same period last year. Total UK revenues for the three months ending in June reached €914 million ($784 million), down from €1.1 billion ($737 million) in 2025. This decrease occurred despite the company's overall group revenues, which grew by 6 percent year-on-year to €2.4 billion (£2.1 billion), reflecting its broader operations across several European countries including Austria, Greece, and Cyprus.

Allwyn attributed the decline largely to a combination of less favorable EuroMillions jackpot cycles compared to the previous year and the impact of a £450 million technology upgrade. The upgrade, involving a temporary 24-hour website and app outage in January, was aimed at modernizing digital platforms and enabling the introduction of new games. The company indicated that these factors, along with ongoing effects from the digital platform transition in the first quarter, contributed to the drop in revenue.

Alongside the sales downturn, contributions from the National Lottery to good causes fell sharply. Figures from the UK Gambling Commission showed that donations to beneficiaries such as sports, arts, health, education, and the environment stood at £377.2 million in the second quarter, marking a 22 percent decrease from a year earlier and reaching their lowest quarterly level in eight years. Combined revenues from gaming taxes and contributions to good causes dropped 21 percent to £578 million from £737 million in 2025.

Despite the revenue decline, Allwyn reported an operating profit of €24 million for the quarter, a significant turnaround from a €2 million loss in the same period the previous year.

The reporting period also saw a leadership change at Allwyn UK. Andria Vidler, who had been UK chief executive since October 2023, announced her planned departure effective next month, following the completion of the digital upgrade. The decision was portrayed as a mutual agreement between Vidler and the company’s chairman, Justin King.

Allwyn appointed Phil Walker as interim UK chief executive, a move that has sparked criticism in Westminster. Some Members of Parliament and the UK Gambling Commission expressed concerns about Walker’s gambling industry background and a previous regulatory sanction he received while managing William Hill. Allwyn defended the appointment, emphasizing Walker’s operational and digital expertise as vital during the ongoing transition.

Allwyn, which won the National Lottery operating licence in 2024 by replacing Camelot—the lottery’s sole operator since 1994—had pledged to increase funds for good causes as part of its bid. The recent decline in contributions has drawn attention amid the cost of living pressures impacting consumer spending behavior in the UK.

Looking forward, Allwyn has revised its full-year revenue expectations downward for the UK, reflecting the challenges seen in the first half of 2026.