National Lottery operator Allwyn unveils tie-up to create £14bn gaming giant

National Lottery operator Allwyn has agreed a deal to merge with Greek firm OPAP to create a global listed gaming giant worth around 16 billion euro (£13.9 billion).

Allwyn, which already owns a near-52% controlling stake in Athens-listed OPAP, plans an all-share tie-up with OPAP that will see the combined group renamed Allwyn.

It will give Allwyn a presence on the stock market, with plans to retain OPAP’s Athens listing for the merged group, but with aims to launch an additional stock market listing in either London or New York.

The groups claim the deal will see the combined firm become the largest listed lottery firm in the world and second largest listed gaming firm globally.

Czech tycoon Karel Komarek’s investment vehicle KKCG owns Allwyn with a 96% stake and will remain the largest shareholder in the combined company.

Allwyn will own around 78.5% of the merged group, with OPAP owning the remaining 21.5% stake.

Mr Komarek, founder and chairman of Allwyn and of KKCG, said: “Today’s announcement redefines the sector, signalling the creation of the second largest listed gaming entertainment company globally.

“For investors, this is a unique opportunity to be part of a dynamic company that is shaping the future of entertainment.

“The combined strength and scale of these multibillion dollar businesses, massive customer base and Allwyn’s continued investment in technology and content, will accelerate innovation and fuel significant international growth.

“We’re on a mission to build the world’s leading global gaming entertainment company, and today’s transaction takes us one step closer to that goal.”

KKCG first invested in OPAP in 2013.

The merged group will switch its domicile to Switzerland following the tie-up, where Allwyn is currently headquartered.

Allwyn’s chief executive Robert Chvatal said: “Since being founded 13 years ago, we have grown substantially in terms of business performance, scale and innovation.

“With this combination, we will be able to grow further, faster as we deploy group-wide know-how, a unified brand and sponsorship strategy, and in-house technology and content.”