LottoPalace and the Ongoing VELTYCO Crisis

Financial Instability at VELTYCO

On November 22, 2018, the board of VELTYCO GROUP PLC publicly acknowledged significant financial distress. According to their statement, the company was:

• Facing difficulties in collecting receivables in its online financial trading marketing vertical

• Considering major impairments

• Forced to cut back on marketing expenditures

What raises concern is that the defaulting clients are all reportedly part of the corporate web tied to Uwe Lenhoff — founder, majority shareholder, and business strategist behind VELTYCO. Among the most prominent names in this network is LottoPalace (website), which, according to the board’s release, owes €1.4 million to VELTYCO.

VELTYCO’s Business Verticals

VELTYCO structures its operations into distinct verticals:

• Financial Trading Marketing

• Sportsbook and Casino (via Bet90)

• Online Lottery (via LottoPalace)

With the EU-wide ban on binary options and repeated regulatory warnings against many brands tied to VELTYCO’s financial trading division, the company has come under increasing pressure. Banks and authorities have already cracked down on numerous platforms associated with VELTYCO, and the firm has hinted at ongoing issues with banking access.

Two Key Takeaways

1. The majority of VELTYCO’s revenue and cash flow in its trading vertical is generated through unregulated and unauthorized platforms.

2. VELTYCO may be among the most frequently warned public companies when it comes to financial regulator alerts.

Inside LottoPalace and Its Ownership Structure

LottoPalace, a lottery betting site targeting German-speaking markets, is operated under a license from Altair Entertainment N.V. (registered in Curaçao) and its subsidiary Payific Ltd (source).

The domain www.lottopalace.com is registered by Softlotto Ltd (source), a Maltese company owned by Uwe Lenhoff. Previously, the domain was held by Altair Entertainment, which also owns www.option888.com — a now-banned binary options platform.

Corporate Entities Behind LottoPalace

These companies are closely tied to Lenhoff, who also serves as Head of Business Development at VELTYCO. In effect, he manages business operations involving entities he also owns — a serious conflict of interest (source).

Circular Relationships and Undisclosed Risks

Most of VELTYCO’s revenue is derived from internal transactions between companies under the Lenhoff umbrella. However, this interdependence is not clearly disclosed in public filings, leaving shareholders in the dark.

Conflict of Interest Alert:

Uwe Lenhoff, alongside board members Gilles Ohana and Marcel Noordeloos, continues to operate in a structure where Lenhoff’s own companies owe VELTYCO substantial sums — potentially compromising the company’s solvency.

Customer Complaints Against LottoPalace

Scam-Or Project has received multiple reports from LottoPalace customers citing:

• Delayed or denied withdrawals

• Unresponsive support teams

• Unfulfilled payment promises

The reported sums range from €5,000 to €30,000, with one case involving €450,000, including €110,000 in direct deposits. The remaining amount stems from lottery winnings and bonuses.

Despite repeated contact, the customer has only received vague promises and was recently told a partial payment would be made by early December 2018. As of now, no such payment has occurred, prompting the customer to take legal action.

Signs of a Liquidity Crisis at LottoPalace

Given VELTYCO’s own admission of cash flow issues, and with LottoPalace being one of its linked entities, it’s reasonable to suspect that LottoPalace may be facing liquidity problems as well.

Investor Warning

In light of mounting evidence and growing customer complaints, investors and users are strongly urged to avoid engagement with LottoPalace. Existing users are advised to:

Immediate Actions for Users:

• Attempt to withdraw funds immediately

• Document all communication and account activity

• Report concerns to relevant financial or gambling regulators

• Consider seeking legal representation if large amounts are involved

At this point, LottoPalace shows too many red flags to be trusted.