A Closer Look at Transparency Issues in Online Lotteries
Traditional state-licensed lotteries in many countries operate under stringent regulations to ensure fairness and accountability. This includes verified draw mechanisms and secure payout systems. In contrast, the online lottery space often lacks this level of oversight. Many platforms engage in questionable practices—pressuring users, hiding behind opaque corporate structures, failing to honor winnings, or vanishing entirely before resurfacing under new identities.
The Scam-Or Project has analyzed the operational and ownership structure behind LottoPalace (https://www.lottopalace.com/) and the companies supporting it.
Boiler Room Operations and Aggressive Sales Tactics
LottoPalace allows users to place bets on lottery outcomes and purchase virtual scratch cards—functions comparable to binary options platforms. Key findings include:
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The use of former binary options boiler rooms and databases.
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High-pressure sales calls mirroring those of entities like Option888.
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A corporate structure involving VELTYCO GROUP PLC (a publicly traded firm), alongside offshore entities Altair Entertainment N.V. and Payific Ltd, which facilitate marketing and processing.
Previously, VELTYCO had ties to Option888, which was later restricted or banned by multiple financial regulators. Following regulatory crackdowns on binary options, Option888 transitioned into the forex market.
In recent months:
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Reports of LottoPalace withholding customer payouts have grown.
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Online forums and reviews cite misleading claims and persistent call center harassment.
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Germany’s BILD newspaper issued warnings about the “telephone mafia” linked to LottoPalace.
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LottoPalace’s Facebook presence was deactivated following a spike in negative feedback.
Historical and Technological Foundations: From TRADOLOGIC to LottoTech
The origin of LottoPalace’s technology lies in TRADOLOGIC, a Sofia-based firm once prominent in binary options software. Key milestones:
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2014: TRADOLOGIC founders launched LOTTOTECH with the aim of creating a white-label lottery betting platform. Its initial public mention appeared in a Facebook announcement.
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DREAMS PARTNER SOLUTIONS LTD (Seychelles) secured the lottotech.com domain.
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LOTTOTECH went public at EiG Berlin in April 2014 and raised $6 million by year-end.
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2015: Altair Entertainment N.V., linked to Uwe Lenhoff, acquired the lottopalace.com domain.
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2016–2017: LOTTOTECH activity subsided; assets were restructured under SOFTLOTTO LTD (Malta), consolidating websites like lottotech.com, lottopalace.com, and softlotto.com.
Current Operational Framework
The present structure involves several key entities:
|
Entity |
Function |
|
VELTYCO GROUP PLC |
Public-facing marketing and oversight |
|
Altair Entertainment N.V. |
Website ownership and management |
|
Payific Ltd |
Payment processing services |
|
SoftLotto Ltd (Malta) |
Platform development and maintenance |
All of these are tied to Uwe Lenhoff, VELTYCO’s main shareholder and alleged orchestrator behind LottoPalace. The website itself omits any mention of VELTYCO, presumably to mask its true ownership. Development is believed to still operate out of Sofia, Bulgaria.
Uncovering Beneficial Ownership
A 2016 VELTYCO admission document (from its SHELTYCO period) detailed the corporate links between Uwe Lenhoff, Altair Entertainment N.V., Payific Ltd, and LottoPalace. These entities collectively manage marketing, operations, and platform development.
This reveals that the LottoPalace brand is essentially a component of Lenhoff’s broader commercial structure.
Final Thoughts: Proceed with Caution
Due to the substantial volume of user complaints, the lack of operational transparency, and direct ties to previously sanctioned entities, extreme caution is warranted when interacting with LottoPalace and its network.
VELTYCO GROUP PLC should be considered the responsible entity for addressing user concerns regarding the LottoPalace platform.