Gambling Commission’s fees doubled to £28.8 million in Richard Desmond’s £1.3 billion lottery lawsuit
Over the past year, the cost of running a UK gambling regulator has doubled as it prepares for a high-risk legal showdown granting a national lottery license.
The newly submitted accounts show that the Gambling Commission’s fees related to the National Lottery soared to £28.8 million in March, up from £14.4 million the previous year. The surge reflects the growing legal fees as regulators prepare to pay compensation for the £1.3 billion claim for publication tycoon Richard Desmond.
Desmond, 73, sued the commission after his company failed to win a lucrative 10-year license, which was granted to Allwyn, owned by Czech billionaire Karel Komárek. The case is scheduled to begin in the High Court in October.
The work of the Commission is partly funded through the National Lottery Distribution Fund (NLDF), which will sell tickets for good reasons by the currency raised by fare. But with the spiral of litigation costs for regulators (up to £13.4 million last year), critics warned that funds for charities and community projects have been put into court.
Desmond also filed another £700 million claim, arguing that funds allocated for good causes under previous operator Camelot constituted a “subsidy” that should now be returned from Allwyn. If either the claim is successful, it may also draw losses from the NLDF.
The Gambling Commission insisted that it hosted “fair, strong” competition and said its assessment process was legal. Meanwhile, Allwyn has had difficulties since taking over the lottery early last year. A major IT system upgrade is crucial to its commitment to bringing multiple charitable donations to £38 billion.
Despite the turmoil, national lottery sales rose due to record euro bonuses, including €250 million (£217 million) in March. This helps offset the decline in lotto and scraper sales during cost of living crisis. Overall, funds raised with good causes increased by £100 million to £1.8 billion.
