The UK Gambling Commission (UKGC) has reported that its total costs for the 2024-25 fiscal year more than doubled, largely due to the expensive legal dispute surrounding the fourth National Lottery licence.
The regulator’s annual report revealed that its total expenditure surged to £47.1 million (US$55.4 million), a dramatic increase from the £23.3 million recorded in the previous year.
The primary driver of this increase was the £19.5 million in costs associated with the legal challenge brought by the former lottery operator, Camelot, and its technology provider, IGT.
The dispute arose after the Commission awarded the lucrative fourth National Lottery licence to rival bidder Allwyn in 2022. Camelot and IGT contested the decision, triggering a lengthy and costly legal process that ultimately saw Allwyn’s acquisition of Camelot UK, which then led to the withdrawal of the legal challenge.
The Commission stated that these costs were funded by a specific Grant-in-Aid from the government, separate from its regular operational funding.
Andrew Rhodes, CEO of the Gambling Commission, commented on the unprecedented nature of the situation and its impact on the regulator.
Most of our work to award the fourth licence was funded by the National Lottery, but the litigation costs were not part of that arrangement. We are pleased that the litigation has concluded and we can now focus on the transition to the fourth licence.
Rhodes also provided an update on the ongoing review of the UK’s Gambling Act, a process that continues to shape the future of the industry.
We are now in a position where the Gambling Act Review White Paper has been published and the UK Government is providing the Commission with the strategic direction to go and deliver on the ambitions of that review. This will see us consulting on and implementing a wide range of changes over the next 18 months.
Excluding the one-off legal costs, the Commission’s like-for-like expenditure for the year was £27.6 million.
