UKGC faces £70m legal showdown with Richard Desmond over National Lottery contract
The UK Gambling Commission (UKGC) is facing a costly legal battle with media tycoon Richard Desmond. Two lawsuits, including a £70 million claim over the National Lottery contract, are set for trial in October. The disputes have already pushed the regulator's legal expenses up by millions. Desmond, a former bidder for the National Lottery licence, is challenging the UKGC's decision to award the contract to Allwyn in 2022. His first lawsuit argues that funds reserved for good causes under the previous operator, Camelot, should now be reclaimed from Allwyn. A second case centres on the commission's handling of the bidding process.
The UKGC's legal costs have surged from £400,000 to £13.4 million in the past year. Errors by the regulator, including an offer to pay £200 million to settle the dispute and the accidental release of confidential documents to Desmond's lawyers, have added to the financial strain. Overall, the commission's lottery-related expenses have climbed by £14.4 million.
Court rulings in February 2026 dismissed Desmond's £70 million subsidy claim. However, if either of his remaining suits succeeds at trial, the National Lottery Distribution Fund (NLDF)—which funds good causes from ticket sales—could be left covering the costs. The NLDF also partly funds the UKGC itself. The October trial will determine whether Desmond's challenges hold weight. A victory for him may force the NLDF to absorb the legal costs, diverting funds from charitable projects. The UKGC's rising expenses highlight the financial toll of the ongoing dispute.
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