UKGC Faces High Court Case Over Lottery Licence
The UK Gambling Commission is preparing for a High Court trial following a challenge from Richard Desmond, who disputes the process that awarded the National Lottery licence to Allwyn. His claim focuses on alleged procedural flaws and seeks significant damages. The outcome could affect both lottery funding and the Commission’s credibility.
Rising legal costs and disclosure errors
The Commission’s lottery-related costs nearly doubled in the past year, increasing from £14.4 million to £28.8 million. Legal spending rose sharply, with litigation costs reaching £13.4 million due to the ongoing dispute. In addition, the regulator mistakenly disclosed more than 4,000 internal documents to Desmond’s legal team.
A judge ruled that these materials could be used in the case, raising concerns over the UKGC’s document-handling procedures. This incident further intensified criticism of the regulator at a time of growing public interest in the case. As a result, the Commission now faces the most significant legal challenge in its history.
Allegations of unfair process
Desmond argues that the 2022 tender process was flawed because of undisclosed criteria, inadequate feedback, and potential conflicts of interest. He also claims that post-award changes should have required a new competition for the licence granted to Allwyn. Initially, he sought £1.3 billion in damages, but the claim has since been reduced to around £200 million.
The Gambling Commission insists that his bid was uncompetitive and that the process was fair. However, if Desmond’s case succeeds, compensation could come from the National Lottery Distribution Fund, impacting resources already allocated to charitable projects. The trial therefore carries consequences beyond the dispute itself, with implications for both lottery funding and regulatory oversight.