British-based punters could have the chance to win £1bn jackpots for the first time after the National Lottery operator struck a deal to join Powerball, the world’s richest regular lottery prize draw.
Sky News can exclusively reveaedl that Allwyn UK, the European group which took on the UK licence from Camelot just over two years ago, will announce this week that it has reached an agreement with the Multi-State Lottery Association (MUSL) to bring Powerball to Britain.
It would be the first time the game has been made available outside the US, and is understood to follow years of talks between Allwyn and its American counterparts.
Under the plans, which are due to be announced on Tuesday, National Lottery players will be entered into the main Powerball draw for the chance to win jackpots which on occasion exceed £1bn.
In a draw made just before Christmas, for example, a ticket sold in Arkansas claimed a prize worth $1.8bn (£1.36bn), while the biggest-ever jackpot was $2.04bn, paid out in 2022.
Tonight’s Powerball jackpot in the US is estimated at $45m, while the main UK Lotto jackpot for this Wednesday’s draw will pay out just over £5m in aggregate to winning ticket-holders.
This week’s Euromillions jackpot – the draw for which takes place on Tuesday – is expected to reach roughly £100m.
Whitehall sources said the Gambling Commission and Department for Culture, Media and Sport had been briefed on the Powerball proposals, which one industry insider said ranked among the biggest innovations to the UK National Lottery since it launched in 1994.
It will also be the first major new game launched under Allwyn’s stewardship of Britain’s 32 year-old National Lottery.
The plans are expected to see Powerball being launched in the UK later this year, with British-based winners receiving any jackpot payout over a 30-year period.
This is aimed at ensuring compliance with relevant tax laws, according to people close to the situation.
For Powerball prizes lower than the jackpot, UK ticket-holders will be eligible for a separate prize structure to their American counterparts, with the details also likely to be confirmed this week.
Allwyn is also expected to set out the details on Tuesday of a relaunch of the main Lotto game.
The Powerball alliance comes as Allwyn has been grappling with the transition away from technology systems used by Camelot to new suppliers, with a series of challenges hampering its ability to launch new games in the period since it took over the licence.
Allwyn says it has invested £450m since taking over the licence in new systems and technology, including a new consumer app.
As part of its pitch to the Gambling Commission, in which it came up against rivals including Camelot and Richard Desmond, the former media tycoon, Allwyn pledged to more than double charitable donations from just under £18bn to £38bn – equivalent to £3.8bn a year during the decade-long licence period.
The triumphant bidder subsequently reduced this commitment – but still said that it would double weekly returns to good causes from £30m to £60m by the end of the licence period.
Camelot is understood to have pitched joining Powerball in its own licence application during the last bidding contest.
Latest Lotto sales figures indicate that £33m-a-week is being generated for good causes, with Allwyn hopeful that Powerball will deliver a significant boost to that figure.
After winning the licence, Allwyn was hamstrung by a legal challenge brought by the previous Lottery systems provider, International Games Technology.
Meanwhile, Mr Desmond, who now lives in Dubai, is taking legal action against the Gambling Commission over its decision to award the licence to Allwyn, with a judgement expected in that case shortly.
Allwyn is expected to pursue a listing of its shares in either London or New York in the next couple of years following a merger of the business with OPAP, its Greek subsidiary, announced last year.
In response to an enquiry from Sky News on Monday evening, Allwyn said it would not be commenting ahead of any formal announcement.
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