Gambling Commission Faces Legal Setback After Disclosing Sensitive Documents
The Guardian has reported that the UK Gambling Commission mistakenly gave over 4,000 confidential documents to lawyers representing media tycoon Richard Desmond. The High Court called the error “extraordinary,” raising concerns about case handling and potential financial consequences for lottery-funded causes.
Desmond’s Lawsuit Against the Gambling Commission
Richard Desmond’s investment group, Northern & Shell (N&S), is suing the Gambling Commission for £200 million in damages. The dispute began in 2022 when the regulator awarded the 10-year National Lottery licence to Czech-owned operator Allwyn, rejecting bids from Camelot and N&S.
Despite settlement talks, N&S turned down a £10 million offer in December. The case will go to trial in October. The commission warns that any payout could come from lottery funds meant for charitable causes.
Regulator Admits to Major Disclosure Error
During a procedural hearing, the Gambling Commission admitted to mistakenly sharing thousands of sensitive documents with N&S’s legal team. A source called the mistake “huge.” The regulator is still identifying which files it disclosed.
The commission asked for a six-week extension but received only until next week. Mrs Justice Jefford called the mistake “extraordinary” and “unprecedented.” She ordered the regulator to cover N&S’s legal costs for the hearing.
Next Steps in the Case
The judge has not yet decided whether N&S must return or redact the documents. A new hearing is set for early March.
Neither the Gambling Commission nor Hogan Lovells commented on the case. N&S also declined to issue a statement.
The Guardian has reported that the awarding of the fourth National Lottery licence in 2022 marked the first time control was transferred away from Camelot since the lottery’s inception in 1994.
Source: The Guardian