Next operator of National Lottery identifies ‘material weaknesses’ in its financial reporting that could increase chances of fraud
The next operator of the National Lottery has identified ‘material weaknesses’ in its financial reporting that could increase chances of fraud.
Allwyn Entertainment, owned by Czech billionaire Karel Komarek, warned investors of the threat in a recent report to the US Securities and Exchange Commission (SEC).
Weakness: Allwyn Entertainment is owned by Czech billionaire Karel Komarek (pictured with his partner Stepanka)
The firm, which beat Camelot to the National Lottery licence, said there are issues that could impair its ability to ‘produce timely and accurate financial statements or prevent fraud’.
A problem raised by Allwyn was that it ‘lacked a sufficient number of professionals’ for the SEC financial reporting requirements. The admission, which it said has not resulted in any ‘material misstatements’, forms part of Allwyn’s preparations for a £7.4billion New York float.
Before taking over the National Lottery in 2024, Allwyn must overcome Camelot’s legal complaint that it was ‘unlawfully appointed’.
Allwyn has said it is taking the ‘necessary actions’.
It added: ‘This is a common disclaimer to prepare for a US listing.’ It also said that it complies with global reporting standards.