UK Lottery Operator Allwyn Must Account on Donations: Lawmakers
With Czech firm Allwyn assuming control of the UK National Lottery, British lawmakers are looking for assurances that the new operator will fulfill its promise to allocate revenue to charitable causes.
Allwyn replaced Camelot, which had managed the lottery since its 1994 start, after a competitive bidding contest. It secured the projected £80 billion (US$100 billion) 10-year contract mainly due to its commitment to generate £38 billion (US$48 billion) for charitable purposes in the coming decade, amounting to £3.8 billion annually. Camelot, now acquired by Allwyn, provided an average of just over £1 billion annually throughout its 29 years in operation.
‘Opportunity to Reconnect’
However, the new operator has also conceded that it will not meet its promised short-term goals. The company attributed the setbacks in the transfer process to legal issues raised by unsuccessful bidders. Allwyn states it is dedicated to providing the total amount promised throughout the 10-year agreement.
"The phasing has changed,” Robert Chvátal, Allwyn’s chief executive told The Financial Times last October, adding that “in the great scheme of things of 10 years, we have a chance to catch up.”
Currently, legislators are requesting that the UK Gambling Commission (UKGC) clarify its strategy for holding Allwyn accountable.
In a letter to the regulator reviewed by The Guardian, the all-party parliamentary group (APPG) on gambling-related harm inquired “what measures are being implemented to guarantee that contributions to good causes are prioritized and enhanced under the new contract.”
Russia Relations
The APPG was formed to counsel the government on suggested gambling reforms, under the leadership of the Labour Party’s Carolyn Harris and ex-Conservative Party leader Iain Duncan Smith. In its correspondence with the UKGC, the group also sought additional information regarding Allwyn's owner, Czech billionaire Karel Komárek, along with his business connections to Russia.
Following Allwyn's selection as the UKGC’s preferred bidder for the lottery, it was revealed that Komarek co-owned an underground gas storage site in the Czech Republic in a 50-50 joint venture with the Russian state-run energy firm, Gazprom.
Last Friday, KKCG, the holding company of Komárek, revealed that Gazprom’s share in the venture had fallen to under 3%. KKCG is anticipated to fully eliminate the Russian company's stake in the facility by the year's end.
The APPG requested that the Gambling Commission offer “additional details on the extensive evaluations that the Commission has conducted and will keep conducting concerning Allwyn’s ownership and that of its associates.”
