Allwyn, the company that has recently taken over the National Lottery in the UK, is under scrutiny for allegedly securing loans from Russian banks prior to obtaining the lottery license. These loans, totalling €640 million, were reportedly taken out in 2020 were used to facilitate the acquisition of the £6.5 billion (€7.62 billion) lottery license, granted for a period of 10 years.
The Czech owner of Allwyn, Karel Komárek, has been linked to Russia, further raising concerns. The loans were routed through European subsidiaries of the company located in Germany and the Czech Republic. Additionally, Komárek is reported to have partial ownership in a company associated with the Russian Gazprom.
Despite concerns over ties to Russia, Allwyn was granted the lottery license in February 2024, succeeding Camelot, the previous license holder. However, shortly after assuming its role as the lottery provider, questions resurfaced regarding its connections with Russia.
It was revealed that Allwyn had outstanding loans with two Russian banks, VTB and Sberbank, both of which had been placed on the UK sanctions list following Russia’s invasion of Ukraine. The loans were only paid off by Allwyn a week after being notified of its preferred candidate status by the Gambling Commission in March 2022.
During a parliamentary session in June 2022, the Gambling Commission faced scrutiny for not disclosing the Russian bank loans while justifying its selection of Allwyn. MPs expressed dismay over the lack of transparency and demanded answers from the regulator.
Labour MP Clive Efford criticized the Gambling Commission for withholding information about the loans, stating that it demonstrates a lack of transparency. Conservative MP Iain Duncan Smith echoed these sentiments, urging the commission to provide a statement regarding its decision-making process.
In April, MPs are scheduled to further investigate the regulator’s handling of the lottery license issuance and the loans obtained from Russian banks by Allwyn.
