Gambling Commission Faces Backlash Over Accidental Release of Sensitive Documents

In what is being described as an “unprecedented blunder,” the Gambling Commission has come under fire for accidentally handing over more than 4,000 sensitive documents to the legal team representing Northern & Shell (N&S), according to individuals present at a procedural hearing on Wednesday.

The controversy stems from the Commission’s 2022 decision to award the Fourth National Lottery licence to Allwyn, marking the first time that Camelot lost its position as the operator. Alongside rejecting Camelot’s bid, the regulator also turned down a third proposal submitted by British publisher Richard Desmond. Desmond, whose company Northern & Shell owns tabloids such as The Daily Express, celebrity magazines like OK!, and a variety of adult content in both print and televised formats, launched legal proceedings against the Commission after his bid was rejected.

Following this decision, N&S pursued a lawsuit seeking £200 million in damages, alleging that the Commission mishandled the bidding process. While the National Lottery has argued that any financial compensation might be drawn from funds designated for charitable and good causes, the High Court has scheduled a trial for October.

However, during Wednesday’s procedural hearing, it was revealed that Hogan Lovells, the London-based law firm representing the Gambling Commission, mistakenly provided Desmond’s legal team with over 4,000 confidential documents related to the lottery licence selection process. In response, the Commission has formally requested the return of these materials, though it remains uncertain whether the judge will compel the opposing side to comply.

Adding to the Commission’s challenges, officials have admitted they are unsure which specific documents were inadvertently disclosed.

For context, Northern & Shell operates The Health Lottery, a lottery system that allocates 20% of its ticket sale proceeds to local health-related charitable and community support initiatives.

Seeking additional time to address the situation, the Commission requested a two-month extension, but Mrs. Justice Jefford has granted them only until next week to resolve the matter. A new hearing has been scheduled for early March, and the Gambling Commission will be responsible for covering N&S’s legal costs incurred due to this error.

By fLEXI tEAM