Recent disclosures from the UK Gambling Commission (UKGC) indicated that Allwyn’s prior ties to Russia had no bearing on the National Lottery licensing procedure. Following the submission of a freedom of information request by the gaming news outlet NEXT.io, this explanation was made.
Only last month did KKCG, the parent firm of Allwyn, break off its business ties with Russian companies. Because of these ties, several questioned UKGC’s decision to grant Allwyn the lottery license. But according to a March 2022 email from the UKGC to Allwyn, the Russian connections of KKCG were not considered significant to Allwyn’s proposal.
Separation from Russian Investments
The UKGC further clarified that Russian energy giant Gazprom’s investments in KKCG did not directly impact Allwyn. The regulator emphasized that these investments were unrelated to the Allwyn group, which operates as a distinct corporate entity.
In response to the concerns, Allwyn eventually cut ties with Russia. UK MPs had previously criticized the UKGC for lacking transparency. Iain Duncan Smith, in an interview with The Guardian, mentioned difficulties in obtaining information about Allwyn’s alleged Russian connections from the regulator. While the UKGC did address the issue, Smith expressed concerns over the prolonged process.
Allwyn also had loans from Russian banks VTB and Sberbank, both sanctioned by the UK and EU following Russia’s invasion of Ukraine. Although Allwyn promised to cease dealings with these banks and eventually repaid its debts, this raised further transparency questions about the UKGC. Notably, Allwyn failed to disclose these loans during the DCMS select committee hearings.
Allwyn declared in June that it had acquired the remaining interest from Gazprom in Moravia Gas Storage through its MND subsidiary. Karel Komárek, the creator of KKCG, has openly denounced Russia’s incursion into Ukraine, calling it a “senseless act of aggression.”
Furthermore, Allwyn released an email that refutes the claims made by some that Komárek is pro-Russian. With this action, the business further severed its ties to its contentious past.
Despite early reservations, the UKGC’s stance and Allwyn’s subsequent actions demonstrate the regulator’s faith in Allwyn’s suitability to run the National Lottery.
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