"Newly filed accounts show that the Gambling Commission's costs linked to the National Lottery soared to £28.8m in the year to March, up from £14.4m the year before. The surge reflects mounting legal fees as the regulator prepares to defend itself against a £1.3bn damages claim from publishing tycoon Richard Desmond. Desmond, 73, is suing the Commission after his company failed in its bid to win the lucrative 10-year licence, which was awarded instead to Allwyn, owned by Czech billionaire Karel Komárek."
"The Commission's work is partly funded through the National Lottery Distribution Fund (NLDF), which channels money raised by ticket sales to good causes. However, as the regulator's litigation costs spiral - up to £13.4m last year from £400,000 previously - critics warn that funds meant for charities and community projects are being drained into the courtroom. Desmond has also filed a separate £70m claim arguing that funds set aside for good causes under the previous operator, Camelot, constituted a "subsidy" that should now be clawed back from Allwyn."
"The Gambling Commission insisted it had run a "fair and robust" competition and said its evaluation process was lawful. Allwyn, meanwhile, has faced difficulties since taking over the lottery early last year. A major IT system upgrade, deemed critical to its promise to more than double charitable donations to £38bn, was beset by delays, prompting enforcement action by the regulator. Despite the turbulence, National Lottery sales rose last year thanks to record EuroMillions jackpots, including a €250m (£217m) prize in March."
The Gambling Commission's National Lottery-related costs rose to £28.8m in the year to March, up from £14.4m the prior year, driven largely by legal fees. The regulator is preparing to defend a £1.3bn damages claim from Richard Desmond and faces a separate £70m claim over alleged subsidy clawback. Litigation spending has been partly funded via the National Lottery Distribution Fund (NLDF), prompting criticism that money for charities and community projects is being diverted. The Commission maintains the licence competition was fair and lawful. Allwyn's takeover has been troubled by IT upgrade delays and regulatory enforcement, while sales rose due to record EuroMillions jackpots.
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