UK may nationalize the lottery, putting Komárek's Allwyn at risk

Britain's new prime minister, Andy Burnham, is weighing a broader expansion of state control over several industries, and the National Lottery has emerged as a potential candidate for nationalization — an asset run by Allwyn, part of the KKCG group owned by Czech billionaire Karel Komárek.

According to The Telegraph, Culture Secretary Lisa Nandy favours adding the lottery to the list of businesses suitable for state ownership. The move is said to be driven by concerns over the quality of the current operator's performance — that is, Allwyn, which took over running the British lottery last year.

For Komárek, this could mean serious reputational and financial risk: the licence to run the UK's National Lottery is one of the most prestigious and profitable assets in his empire, which spans gambling and lottery businesses in several countries around the world.

Burnham's plans are not limited to the lottery — the prime minister is also considering a temporary state takeover of debt-stricken water company Thames Water, a bigger state role in housing, and expanding the model of public control over bus services that he previously introduced in Greater Manchester.

The opposition has already criticized the plans. Robert Jenrick of Reform UK said Burnham wants to "punish business" and drag the country back toward tighter state control. Meanwhile, the new prime minister is promising to restore trust in government and to act quickly to ease the impact of the rising cost of living.

How this initiative will play out for Allwyn — and for Komárek personally — remains unclear, but the mere threat of nationalization calls into question the stability of one of the Czech businessman's key foreign assets.

By the Around Prague newsroom