UK Gambling Commission Dismisses Russian Links in Allwyn’s Lottery Bid

Connections with Gazprom

The UK Gambling Commission (UKGC) has concluded that Allwyn Entertainment’s connections to Russian state enterprises were not relevant to its successful bid for the £6.5 billion National Lottery tender. Documents obtained by NEXT.io reveal that the Commission deemed these connections irrelevant, sparking debate over regulatory practices.

In 2022, Allwyn, a subsidiary of the Czech holding company KKCG, was named the Preferred Applicant for the National Lottery licence, unseating Camelot, the long-time operator. The announcement led to public scrutiny of Allwyn’s links to Russian entities. Specifically, KKCG was involved in a joint venture with Gazprom and held shares in a Russian gas terminal. Despite these connections, KKCG severed its remaining Russian ties in June 2024.

In correspondence dated March 2022, the UKGC assured Allwyn that its parent company’s Russian affiliations were deemed irrelevant to the tender process. The Commission reiterated this position during a November 2023 DCMS select committee hearing, explaining that the investments were part of KKCG, a separate corporate entity from Allwyn.

Political and Media Reactions

The decision not to consider KKCG’s Russian links in the lottery bid has raised questions among MPs and the media. Former Tory leader Iain Duncan Smith criticized the lack of transparency, noting difficulties in obtaining information about the ties from the UKGC. This sentiment was echoed in public discussions about the integrity and openness of the tender process.

Despite the controversy, KKCG eventually dissolved its joint ventures with Russian entities. In May 2024, the company announced the complete acquisition of Gazprom’s stake in a Czech gas storage facility, ending the partnership. This move followed assurances from Allwyn that the loans from Russian banks would not affect its financial stability or its bid for the National Lottery.

Allwyn had secured loans from Russian banks VTB and Sberbank in 2020. These loans, amounting to €64.5 million, were repaid by March 2022 in compliance with UK and EU sanctions imposed after Russia’s invasion of Ukraine. The repayment was confirmed to not impact Allwyn’s financial resources for the lottery application, although the UKGC did not disclose the existence of these loans during the committee hearings.

The full document can be read here.