State Lottery of North Macedonia faces audit irregularities

The State Audit Office (SAO) has issued an unfavorable opinion regarding the 2024 financial reports and legal compliance of five gambling companies in which the State Lottery of North Macedonia holds a 51 percent majority stake. The audited entities include ‘77 Bits’, ‘Vezuv’, ‘Mozzart’, ‘Novo-VLT’, and ‘Casinos Austria’.

Key findings from the audit include significant discrepancies in capital contributions. While joint venture agreements specified total investments of approximately 2.17 million euros to be paid in three installments over three years, founding documents cited much lower amounts of 771,470 euros due within one year. In the case of ‘Vezuv’, only about 146,000 euros of the agreed amount had been paid at the time of the audit.

Furthermore, auditors identified several governance and procurement issues. The companies reportedly bypassed the Law on Public Procurement by using internal regulations and public calls that often resulted in only a single bid. This led to long-term service contracts for software and technical support lasting between 10 and 15 years. The audit also noted a lack of documentation for marketing and promotional expenses, making it impossible to verify if funds were used rationally.

In response, the new management of the State Lottery stated that they had already initiated measures to address these inherited irregularities, including legal actions that led to the closure of certain internet gambling entities.