The UK Gambling Commission (UKGC) has seen its annual spending climb by £14.4 million ($19.4 million), largely driven by soaring legal costs linked to multiple lawsuits.
Most of these expenses stem from its ongoing legal battle with media tycoon Richard Desmond.
The regulator’s litigation bill jumped from £400,000 ($540,924) last year to £13.4 million ($18.1 million). Desmond, 73, is set to intensify the dispute in October, when his £1.3 billion ($1.7 billion) lawsuit over the National Lottery goes before the High Court. The surge in legal costs tied to Desmond comes at a delicate moment, as the gambling industry faces heightened scrutiny and uncertainty over a potential betting tax hike.
Northern & Shell PLC, Desmond’s company, launched legal proceedings last year, accusing the UKGC of mishandling the tender that awarded Allwyn the fourth National Lottery license in 2022. The firm called the process “controversial” and is seeking £20 million ($25.5 million) in damages.
Beyond Desmond, the UKGC has also faced legal challenges from Camelot, International Game Technology, and a Flutter subsidiary. Although these cases were eventually dropped, they still added to the regulator’s expenses.
Part of the UKGC’s funding comes from the National Lottery Distribution Fund (NLDF), which allocates lottery proceeds to charitable causes. However, Desmond has also filed a separate £70 million ($94 million) claim, arguing that funds once set aside for good causes under former operator Camelot amounted to a “subsidy” and should now be clawed back from Allwyn.
In May, Desmond’s case gained further traction when the High Court ruled he could use thousands of documents that the regulator had mistakenly disclosed. If either of his claims succeeds at trial in October, reports warn that the financial burden may fall on the NLDF. In that case, either the UKGC’s costs would rise sharply again, or the NLDF might offset them by diverting funds from other areas.
