UK Lottery Regulator: Prominent UK Politicians Urge Gambling Authority to Enhance Oversight of Allwyn
Gambling firm Allwyn takes over UK National Lottery from February 2024, vows to boost funds for social causes
In advance of taking over the UK National Lottery operation from February 1, 2024, Allwyn had made a commitment during negotiations to enhance income for charity initiatives. The sum promised was a staggering £38 billion (around €44.5 billion) throughout the 10-year license period as reported by the British newspaper The Guardian and confirmed by Allwyn themselves.
At present, the UK National Lottery contributes around £30 million in funding weekly for charitable projects. The goal is to boost this amount to £60 million per week before the end of the license period. – Allwyn's statement, source: The Guardian
However, Allwyn's CEO Robert Chvátal has indicated that achieving these enhanced donation amounts could be challenging, given the challenges faced by Allwyn in entering the UK market.
UK MPs request assurances
This hint of difficulty has prompted the Problem Gambling Committee of the British Parliament to seek clarification from the UK Gambling Commission (UKGC), the UK's gambling regulatory body.
In a letter to the UKGC, the committee has requested an explanation of their approach to reviewing Allwyn. Some MPs have expressed concerns that Allwyn is investing in other gambling sectors and maintaining business ties with Russia despite denying it.
Allwyn at a Glance
Allwyn, previously known as Sazka, operates lotteries beyond its home country, the Czech Republic, in other European nations. Till December 2021, it was under the ownership of Swiss investment company KKGC, led by Czech businessman Karel Komárek.
Beyond lotteries, Allwyn invests in various gambling companies. It is the largest shareholder of Casinos Austria AG, which manages Austrian casinos, and is also involved in gaming software provider Novomatic.
On a corporate level, KKGC is accused of working with the Russian firm Gazprom. However, these business relations have been terminated, as confirmed by KKGC management.
UKGC Response
In response to the Parliament's request, as reported by The Guardian, the UKGC has now issued a statement.
The UKGC has confirmed that Allwyn is not being financed by sanctioned companies. Additionally, Allwyn has provided projections that make an increase in funding for social causes appear feasible. Lastly, Allwyn is bound by stringent conditions to uphold this goal without compromise.
The Parliament's Problem Gambling Committee has requested clarification from the UK Gambling Commission about their approach to reviewing Allwyn, citing concerns over Allwyn's investments in other gambling sectors and business ties with Russia, despite Allwyn's denials. News of Allwyn's commitments to boost funds for social causes has been widely reported, with Allwyn promising to increase weekly funding from £30 million to £60 million before the end of their 10-year license period.
