Bradford are under scrutiny after it emerged the rugby league club operated a lottery scheme without a legal licence for almost two years.

The Guardian has discovered how the Bulls, who were reformed in early 2017 after being placed into liquidation following a number of financial crises, failed to submit paperwork in relation to a new lottery licence for the new company when it was incorporated.

The process to appoint liquidators at the former parent company of the club, Bradford Bulls Northern Limited, began in February 2017. Around that time the permit for their lottery – known locally as The Big One – was terminated by Bradford council after it was not renewed a month earlier to the cost of £20. The earlier permit began in January 2014 and ran for three years before its termination.

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A new company, Bradford Bulls 2017 Limited, was formed by the New Zealand-born businessman Andrew Chalmers following the club’s liquidation, and it was awarded the Bulls’ playing licence to compete in the Rugby Football League’s domestic competitions. However, it did not apply to the council for a valid lottery registration permit until September 2018.

When it did do so the company had already been trading for 21 months, as had its lottery scheme, which still had thousands of subscribers despite the club’s prolonged financial issues that led to their collapse. Bradford council’s licensing department confirmed via a freedom of information request: “No registration was held in the name of Bradford Bulls 2017 Limited between the period of February 2017 and September 2018.”

Yet during that time period, it was still operating its lottery in the same manner as before the club’s liquidation in early 2017. The Guardian has seen letters sent to lottery subscribers, who pay £1 a week to participate, during the aforementioned period claiming they have won prizes including a “rollover jackpot” of up to £10,000. But they were winners of a lottery which, for almost the entirety of the first two years of the company’s existence, did not appear to have a valid permit to operate.

When asked to comment, the club referred to a statement posted on Thursday on their website which read: “Speculation has risen regarding the current licence position of the Bradford Bulls’ The Big One lottery. We can confirm that under its current stewardship the club holds and paid for a valid lottery licence the fee for which does not exceed £50.”