Italians join race to run the National Lottery
ONE of the world’s most prolific investment firms has launched a surprise bid to run the National Lottery, blowing the race for the prized UK draw wide open.
The Sunday Telegraph can reveal that CVC Capital Partners is backing a bid led by portfolio company Sisal, the operator of Italy’s most popular lottery, pitting the investment giant against two of its fiercest rivals.
The bid will be made in conjunction with children’s charity Barnardo’s, which will provide expertise on raising money for good causes in the UK.
CVC has been particularly active in the sports industry, investing in rugby’s Six Nations and Gallagher Premiership, and previously motor racing’s Formula One. Grassroots sport is among the biggest beneficiaries of National Lottery funding.
Separately, last week, the Luxembourg-headquartered firm lodged a $20bn (£15bn) bid to buy electronics giant Toshiba in what would be Japan’s biggest buyout deal.
The Sisal-led consortium is vying to oust incumbent operator Camelot, which has run the National Lottery since its launch more than a quarter of a century ago.
Camelot, originally a British-led group, is facing its first auction under the ownership of another investment powerhouse, the Ontario Teachers’ Pension Plan.
It has faced criticism since the last auction more than a decade ago over falling sales and a slump in the amount of money raised for good causes. Boss Nigel Railton has arrested the decline more recently, however, with Camelot posting record sales last year.
Until now, the biggest threat to Camelot regaining the licence – which will run for 10 years from 2023 – appeared to come from Czech operator Sazka, the gambling company owned by billionaire Karel Komárek.
Sazka has joined forces with another of CVC’s rivals, Apollo Global Management. The Wall Street firm last year handed Sazka €500m (£430m) to fund the expansion of its lottery operations. It has hired former Sainsbury’s boss Justin King and Lastminute.com founder Brent Hoberman to advise bid lead Sir Keith Mills, who masterminded London securing the 2012 Olympic Games.
Billionaire media mogul Richard Desmond and Indian lottery operator Sugal & Damani have also publicly disclosed plans to bid to participate in this year’s auction.
Francesco Durante, Sisal chief executive, said that winning the UK draw was a “big aspiration”.
Sisal, which runs SuperEnalotto in Italy, only recently began bidding abroad. In the past two years it has won mandates in Turkey and Morocco, as well as retaining its licence at home.
Mr Durante said that Barnardo’s, which was founded in 1866, employs 10,000 staff and runs a network of 600 high street shops, would play a crucial role in the Sisal bid.
“To run the National Lottery, knowledge of the UK market is paramount,” he said.
Javed Khan, Barnardo’s chief executive said: “We are pleased to be working with Sisal in bidding to revitalise the National Lottery, which generates substantial funds for worthy causes across the UK.
“Our involvement will strengthen the partnership’s focus on player protection and responsible play, whilst deepening understanding of the UK charity sector and how it works to make a difference in the heart of local communities.”
Camelot endured a bitter rivalry with Sir Richard Branson during the National Lottery’s first few years. The Virgin Group founder was defeated in the first two auctions in 1994 and 2000. He began exploring a fresh bid in 2019, but last spring abandoned his plans to concentrate on helping his businesses nav- igate the pandemic.
The five-way battle will be decided by the Gambling Commission later this year.
Camelot, originally a consortium that included Cadbury Schweppes and banknote maker De La Rue, outbid Sugal & Damani for the third operating licence in 2009. A year later Camelot was acquired by its current Canadian owners in a deal worth £389m.