UKGC Considered Allwyn’s Ties with Russia Irrelevant to the National Lottery Bidding

The United Kingdom’s Gambling Commission (UKGC) did not believe that Allwyn’s indirect ties to Russia were relevant to The National Lottery licensing process. Responding to a freedom of information request by gambling news outlet NEXT.io, the regulator released previously undisclosed details of the lottery giant’s approach to this issue.

Allwyn’s parent company KKCG, for context, used to have ties with Russian enterprises before completely cutting them last month. These ties were a major concern among Allwyn critics who were concerned about the UKGC’s choice to select it as the next National Lottery operator.  

In an email sent by the UKGC in March 2022, the UKGC told the Czech lottery powerhouse that KKCG’s ties with Russia were not relevant to its application.  

The UKGC also told NEXT.io that Russian energy giant Gazprom’s investments in KKCG did not affect Allwyn directly and were therefore never relevant to the licensing process. The British regulator underscored the fact that these investments were in no way related to the Allwyn group of companies, which were, in fact, a separate corporate entity.   

Allwyn Did Cut Its Ties with Russia Eventually

UK MPs previously critiqued the UKGC, alleging that it is not sufficiently transparent. In an interview with the Guardian, Iain Duncan Smith had said that the government had had a hard time obtaining information about Allwyn’s alleged ties with Russia from the regulator.

While the UKGC did eventually resolve the matter, Smith expressed concern about the lengthy process.

Allwyn also had outstanding loans from VTB Bank and Sberbank, Russian banks that were sanctioned by the UK and European Union once Russia invaded Ukraine. While Allwyn did vow to cease dealing with these banks and eventually repaid its debts, the matter raised further questions about the UKGC’s transparency, since the operator had failed to mention the existence of these loans during DCMS select committee hearings.

As mentioned, Allwyn did eventually cut its ties with Gazprom, announcing in June that its MND subsidiary, owner of Moravia Gas Storage, has purchased its remaining stake from Gazprom. The mastermind behind KKCG, Karel Komárek, also previously condemned Russia’s invasion of Ukraine, calling it a “senseless act of aggression.”

In addition, Allwyn shared an email that shows Komárek is not the pro-Russian supporter many claim he is.