Key Moments:
- The UK Gambling Commission’s CEO reaffirmed Allwyn’s role as National Lottery operator during a legal dispute over the 2022 license.
- The regulator disclosed a rise in lottery-related costs to £28.8 million for the year to March, with legal expenses alone surpassing £13 million.
- Legal action from Richard Desmond’s Northern & Shell seeks £200 million in damages and a separate £1.3 billion claim, with a court case scheduled for October.
National Lottery Recognized as Vital Asset
At the Allwyn Participant Protection Conference on 23 September, Andrew Rhodes, Chief Executive of the UK Gambling Commission, emphasized the National Lottery’s unique place in British society, calling it both a “national treasure” and a “jewel in the crown of this country.” Rhodes highlighted that the Lottery’s status demands more rigorous standards compared to other forms of gambling, with participant protection as a top priority.
Financial Pressures from Legal Dispute
The regulator is experiencing significant financial strain due to ongoing legal action concerning the 2022 license award. Recent filings showed that the Gambling Commission’s costs connected with the Lottery reached £28.8 million for the year ending in March, with legal expenses climbing from about £400,000 the prior year to over £13 million. The dispute stems from Richard Desmond and Northern & Shell, who allege mishandling of the tender process and have labeled it “controversial.” Alongside a claim for £200 million in damages, there is a separate £1.3 billion suit with proceedings expected in October.
Allwyn’s Participant Protection Measures Underlined
Despite the legal challenges, Rhodes assured conference attendees of the essential social function the Lottery provides, stating: “For our sports clubs, our local museums and our historic sites and much more besides,” he said, “just step back for a moment and think about the scale of change that money is able to deliver in communities up and down this country.” Rhodes reaffirmed trust in Allwyn’s commitment, emphasizing their investments in harm minimization, staff education, retailer involvement, and industry collaborations. He stated, “Allwyn’s commitment to getting participant protection right – through investment, working with partners, training staff and retailers and events like today is a both vital and welcome.”
Growth and Ongoing Accountability
During his speech, Rhodes cited the National Lottery’s impressive growth. In the last financial year, £1.8 billion was raised, exceeding the previous year’s total. In the first quarter of the current year, the Lottery generated £485 million, again ahead of last year’s pace. Rhodes referenced the Lottery’s evolution since its single weekly draw in 1994, with the later addition of new draws, scratchcards, and additional games transforming it into its modern form.
However, Rhodes acknowledged that expansion increases oversight and responsibility. He commented, “Those changes, when combined with the scale the National Lottery operates at, bring with them pressure. This scrutiny might not be fair but it is real and it is not going anywhere.”
Participant Protection: A Core Principle
Rhodes addressed the importance of participant well-being, stating: “it’s just not possible for player protection to be an add-on to the National Lottery – it has to run through it like a stick of rock.” He observed that despite the Lottery being “one of the lowest risk products I and the Commission regulate,” maintaining robust participant protection remains essential because “there will always be a risk, however small. And that risk can and sadly sometimes does lead to terrible harms.” He also encouraged learning from individuals with direct experience of gambling-related issues, emphasizing the value of their insights.
Recent Financial Performance
| Year/Period | Funds Raised by National Lottery | Regulator’s Lottery-Related Costs | Legal Expenses |
|---|---|---|---|
| Last financial year | £1.8 billion | £28.8 million (year to March) | Over £13 million |
| First quarter, current year | £485 million | – | – |
| Previous year (legal expenses) | – | – | about £400,000 |
Legal Dispute Timeline
- Richard Desmond and Northern & Shell challenge the 2022 license process, seeking £200 million in damages.
- A separate £1.3 billion claim is also underway, with a High Court case scheduled for October.
- Author
Daniel Williams
