Investment group KKCG has sold a 4.27% stake in its pan-European lottery operator, Allwyn International AG, to listed fund J&T Arch Investments. The transaction, which was structured through KKCG subsidiary Allwyn AG, values Allwyn at €11.2 billion as of December 31, 2024, and generates €500 million in proceeds for KKCG. The proceeds include both consideration and locked box interest calculated from January 1, 2025.

Despite the minority stake sale, KKCG retains a 95.7% holding in Allwyn, maintaining strong control of the business as it continues its strategic growth. The move is seen as a way to open Allwyn’s capital structure to broader investor participation while preserving the founding group’s long-term influence.

Strategic Investment by J&T Arch

J&T Arch Investments, a fund listed on the Prague Stock Exchange, acquired the minority stake in Allwyn as part of its strategy to diversify into regulated gaming. With a net asset value of €5.6 billion as of March 2025, J&T Arch is considered one of the most liquid funds on the Prague bourse.

This acquisition also strengthens the long-standing relationship between J&T Arch and KKCG’s founder, Karel Komárek. While the size of the stake acquired is modest, the investment reinforces the fund’s confidence in Allwyn’s business model and growth trajectory.

Allwyn’s Growth and International Expansion

Allwyn generated €1.5 billion in adjusted EBITDA in 2024, supported by its expansion across Europe and the Americas. The company has made a series of strategic acquisitions, including the purchase of leading e-instants supplier Instant Win Gaming. It has also announced plans to acquire a controlling stake in Novibet, an established online sports betting operator.

These moves have expanded Allwyn’s international footprint and diversified its revenue base beyond traditional lottery operations. Allwyn currently holds leading positions in national lottery markets in Austria, the United Kingdom, the Czech Republic, and the U.S. state of Illinois.

KKCG’s Continued Commitment to Allwyn’s Vision

KKCG reiterated its long-term commitment to supporting Allwyn’s expansion strategy, even after the minority stake sale. By allowing a trusted partner to take a small ownership position, KKCG aims to lay the groundwork for wider investor engagement in the future. 

The transaction does not indicate a shift in KKCG’s strategic direction but rather supports its vision of building Allwyn into a global gaming leader. With continued growth in both revenue and geographic reach, Allwyn remains a cornerstone of KKCG’s investment portfolio. 

KKCG emphasized that the partnership with J&T Arch not only enhances transparency and market visibility for Allwyn but also aligns with its strategy to gradually broaden its shareholder base while maintaining operational control. The group sees this move as a measured step toward long-term capital market readiness.