A Czech billionaire is betting on lotteries for growth.

On June 13 in Prague, according to Reuters, Kreyil Komarek, a Czech billionaire who transformed a regional energy company into an international business empire after the fall of the Berlin Wall, is now betting on selling lottery tickets in cities like Chicago and London to accelerate international growth. Komarek, whose fortune places him second among the richest Czechs after the widow of Petr Kellner and ahead of investor Daniel Kretinsky, views the lottery operator Allwyn as the flagship project of his investment group KKCG. He told Reuters:The expansion of lottery-based entertainment is absolutely essential to our overall group strategy.".

Allwyn is currently the largest lottery operator in Europe, managing national schemes in Italy, Austria, Greece, and other countries. Recently signed contracts for the operation of the UK national lottery and the Illinois state lottery in the USA make Allwyn a competitive player in the rapidly growing global market. According to the reportGlobal Market Report 2024from the Business Research Company, this market is expected to grow from283 billion dollarsin 2023 until425 billion dollarsby 2028.

In an email interview, Komarek noted: " We are always open to new opportunities, especially in Europe and the USA, particularly when we have the chance to leverage the existing experience of the group to unlock growth potential.". Allwyn has already surpassed KKCG's businesses in the energy sector in terms of revenue.7.8 billion eurosabout8.60 billion dollars) in 2023, which amounts to approximately70%the total income of the KKCG group.

The growth of disposable income and the use of technologies such as mobile applications, QR codes, and the creation of more interactive lottery formats are contributing to the expansion of the global market, where the largest players are:

• International Game Technology (IGT)
• Scientific Games
• Intralot

To Komarek, who in the early 90s with the help of a loan in13,000 dollarsHe started a business producing valves and pipes from his father, and success came when he acquired a company in oil and gas exploration.Moravian Oil Fields...which became the foundation of his wealth. However, his real breakthrough came with the acquisition of...in 2012the bankrupt Czech lottery operatorSazka...which opened up horizons for KKCG's international expansion. As Komarek noted, "It was clear that there are many untapped opportunities, and we can replicate this approach on the international stage, using it as a platform for growth.".

Since then2020his condition has tripled and now amounts to9.5 billion dollarsAccording to Forbes, in recent years, KKCG has also been actively investing in biomedicine and sees significant opportunities for further development in sectors such as technology, real estate, energy, as well as in rapidly changing fields including artificial intelligence and Web3.

Allwyn's CEO Robert Chvatal is also planning expansion within the American lottery market, which is estimated at100 billion dollarsIn most U.S. states, lotteries are run by the government, but Chvatal believes that in the future, these organizations will increasingly turn to private providers like Allwyn for additional technology and increased profits.

Allwyn did not disclose the amounts of its latest investments, but in February it acquired a controlling stake in an online lottery supplier.Instant Win GamingChvatal emphasized: "The trend of digitalization in this field is inevitable.". He also added that "We didn't buy the lottery in Illinois just to stay there for only 20 years.".

Inin 2022Allwyn canceled the deal with the company.Cohn Robbins Holdings Corpthrough a reverse merger, which was supposed to lead to a market entry in New York with the undertaken valuation of9.3 billion dollarsChvatal temporarily ruled out the possibility of an initial public offering for Allwyn, noting that the company is well-funded through bank loans and bonds.We have the size and product to go public, but that doesn't mean we should do it.", he added.The market and timing need to be right. The IPO is distracting us right now.".