In the Republic of Moldova, there is no common database on gaming, which would be managed by a state institution in charge of gaming activities, which would also control cash flow. The joint stock company “Loteria Națională a Moldovei” (national lottery) doesn’t possess full information about the types of online lotteries and bets, their value and the value of the fund of gains paid on types of games, etc., says an audit report by the Court of Auditors on the implementation of public-private partnerships for developing the activities of SA “Loteria Națională a Moldovei”, IPN reports.
According to the report, SA “Loteria Națională a Moldovei” was the most profitable entity in 2022 with a net profit of 170.3 million lei and it paid 85.1 million lei dividends into the state budget. The company also ranks second by the rise in sales revenue among state entities. In 2022, its turnover was 7.111,8 billion lei.
The Court of Auditors identified deficiencies caused by the shortcomings existing in the internal control system and the non-functionality of the bodies whose duty is to assess the implementation of the public-private partnership. The preset economic indicators of about €140 million from dividends alone were achieved in the proportion of about 15%, while the investments of about 9.5 million lei made in 18 gaming halls were inefficient and generated losses.
Owing to the uncertainty about the possibility of further using the fund intended for TV games, 6 million lei is kept on the account of the private partnership and will remain there for an indefinite period, while the public partner was attracted into lawsuits that can generate additional costs associated with the payment of damages.
The report also shows that some of the investments made to develop machine gaming activities didn’t help obtain economic gains. For example, the public partner asked the private partner to lend it €1 million to set up 30 gaming halls. The loan was offered for a three-year period at an annual interest rate of 4.9%. Fifteen halls were closed as they didn’t yield profit, while three halls haven’t been at least opened. The investments in the 15 closed halls came to 7.9 million lei, while in the three halls that weren’t opened to 1.6 million lei.
The lottery in Moldova is organized by NGM Company – the private partner of SA “Loteria Națională a Moldovei”. The company also has permits for games with electronic tickets and for sports betting.
