National Lottery favourites Allwyn seeking to cut ties with Russian gas giant Gazprom

The UK gambling regulator is set to award a 10-year license to run the National Lottery to a Czech company owned by a billionaire who is seeking to cut his links with Russian gas giant Gazprom.The Gambling Commission said on Tuesday that Allwyn, owned by Czech billionaire Karel Komarek, and previously known as Sazka Entertainment, was its “preferred applicant” to run the lottery when Camelot’s licence expires in 2024.

It has emerged that Komarek’s company MND (Moravske Naftove Doly) formed a joint venture with Russian energy group Gazprom to build an underground gas storage facility in his home country, which opened in Moravia in 2016.

But Mr Komarek said he is seeking to severe ties with the gas giant following Russia's "brutal" invasion of Ukraine.

Earlier this month, in an open letter, Mr Komarek condemned Russia’s "senseless act of aggression" on its neighbour and said he was in discussions with the Czech government to free the company from Russian involvement in the joint venture.

"It is a senseless act of aggression that must be condemned in the strongest possible terms, and we are doing all we can to support the brave Ukrainians impacted by the barbarism of Vladimir Putin’s regime," Mr Komarek said.

“There are very few options to fully divest from Russian gas in Eastern Europe,” said Mr Komarek. “What we want to do is free ourselves from Russian involvement without putting ordinary Czech citizens at risk, in the middle of winter.”

"I took the decision many years ago to divest and exit from Russian assets with the exception of a shareholding in a gas terminal which we have been trying to exit for a number of years and a 50/50 joint-venture with Gazprom on an underground gas storage facility in the Czech Republic," he said.

Current National Lottery operator Camelot looks set to lose its licence to operate the game after 30 years.

A fiercely contested bidding process has been under way between four parties to hold the licence, which Camelot has operated since 1994 when the game was launched.

But officials said Allwyn is now the preferred applicant to take over the venture in 2024.

Camelot faced a tougher competition this time around, with four applications at the final stage, the highest number since 1994, according to the Gambling Commission.

The other applicants were Sisal Spa, Camelot and The New Lottery Company Ltd. Camelot has been named “reserve applicant”.

Gambling Commission chief executive Andrew Rhodes said: “In its lifetime, the National Lottery has raised more than £45 billion for good causes and is rightly seen as a great national asset.

“Our priority was to run a competition that would attract a strong field of candidates. Having received the most applications since 1994, it is clear that we’ve achieved just that.

“I am confident that the success of the competition will lead to a highly successful fourth licence – one that maximises returns to good causes, promotes innovation, delivers against our statutory duties, and which ultimately protects the unique status of the National Lottery.

Mr Rhodes added he looked forward to working with all parties to ensure a "smooth handover."

Allwyn welcomed the decision, saying its proposal "was judged to be the best way of growing returns to good causes by revitalising the National Lottery in a safe and sustainable way."

The company added its appointment would "breathe fresh life into the National Lottery.”

The Switzerland-based company currently operates lotteries in countries including Austria, the Czech Republic, Greece and Italy.

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Camelot chief executive Nigel Railton said the company was "incredibly disappointed" by the announcement, but added the company still had a critical job to do before its current licence runs out in February 2024.

“We’re now carefully reviewing the Gambling Commission’s evaluation before deciding on our next steps," Mr Railton added.

The Gambling Comission said it was satisfied that no application had been impacted by sanctions relating to Russia's invasion of Ukraine.