The Macedonian State Audit Office (SAO) conducted an audit of financial statements and a compliance audit for 2024 regarding five companies engaged in organizing online and electronic games of chance. These entities include: State Lottery 77 BITS (Bitola), State Lotteri Vezuv (Skopje), State Lottery Mozzart (Skopje), New State Video Lottery– NOVO-VLT (Skopje), and State Video Lottery Casinos Austria (Skopje). In these companies, the joint-stock company State Lottery of the Republic of Macedonia serves as the dominant owner, holding a 51 percent stake in the share capital, the SAO reported Tuesday.
“Regarding the five companies, various conditions, irregularities, and instances of non-compliance in their operations were identified. Due to the significance of these findings, an adverse opinion was issued concerning the accuracy and objectivity of the 2024 financial statements, as well as the compliance of their activities, financial transactions, and the information reflected in the financial statements with relevant legal regulations, guidelines, and established policies. In the case of companies organizing online games of chance, established in 2023 and 2024, the audit identified discrepancies regarding the amount, payment schedule, and recording of cash contributions.
For these entities, the joint investment agreements stipulated that the partners were to make cash contributions totaling EUR 2,171,470, payable in three installments over a three-year period; conversely, the Articles of Association (founding agreements) specified a cash contribution of EUR 771,470, with a one-year payment deadline. No proper or credible evidence was presented to the auditors to explain the reasons for these discrepancies in the amounts and provisions stipulated within the joint investment agreements versus the Articles of Association.
The audit determined that the planned payment of the cash contribution in three installments over three years is inconsistent with the Law on Trade Companies, which provides for a one-year deadline for the payment of the remaining portion of the capital contribution. Furthermore, in the cases of State Lottery – Mozzart and State Lottery – Vezuv, the unpaid portion of the agreed-upon monetary contributions was not recorded in the accounting books. In the case of State Lottery – Vezuv, out of a total agreed-upon contribution of 2,171,470 euros, only MKD 9 million (approx. EUR 146,000) had been paid by the time of the audit,” reads the press release.