UKGC’s Competence in Question as Ex-Porn Baron Makes Regulatory Body Squirm

  • Porn baron’s lawyers want to use sensitive documents UKGC sent them by mistake
  • Desmond’s attorney suggests UKGC source sent the evidence on purpose
  • The UKGC reportedly met in secret with Northern & Shell to settle the $255m claim
Dissappointed man in suit
An ex-porn baron’s legal team wants to use sensitive documents the UKGC mistakenly sent them in a £200m National Lottery suit. [Image: Shutterstock.com]

Rue the day

The UK Gambling Commission (UKGC) must rue the day it became linked with Richard Desmond back in early 2022. Back then, the billionaire ex-porn baron was one of multiple parties to file suits against the UKGC over its awarding the National Lottery contract to Czech firm Allwyn Entertainment.

legal mess of its own making

This week, Desmond has returned to haunt the UKGC, with its competence seriously in question over a legal mess of its own making, or as allegations suggest, by internal design. 

According to UK media on Thursday, the UKGC’s lawyers have mistakenly sent over 4,000 sensitive documents relating to the lottery lawsuit to the former porn mogul’s legal team.

Now, lawyers for Desmond’s Northern & Shell subsidiary want permission to file an amended complaint using some of the sensitive documents in their £200m ($255m) lottery suit against the UKGC. 

Mistake questioned

Desmond’s legal team is suggesting the internal disclosure was not by mistake. 

source sent evidence on purpose

Northern & Shell attorney Sa’ad Hossain KC backed up the claims. Attesting to the legitimacy of the sensitive documents, Hossain stated they had passed scrutiny of senior lawyers. The attorney suggests a UKGC source sent the evidence on purpose.

“The reality is we are entitled to assume the documents have been disclosed to us not by mistake,” he argued.

The UKGC has successfully fended off a series of lawsuits over awarding Allwyn the National Lottery license in March 2022, including from long time operator Camelot. Owned by a pension fund for Ontario teachers and multinational gambling firm International Game Technology, Camelot had operated the lottery since 1994.

The news from Desmond’s legal team represents a serious question mark over the UKGC’s competency and transparency.

Problem with secrets

The mess unfolding on the UKGC from Desmond’s quarter comes with interest. Late last year, reports emerged the regulator was meeting in secret with Northern & Shell with intent to settle the $255m claim.

The UKGC’s alleged secret settlement offer of £10m ($12.9m) maximum was rejected by Desmond, who now has the national regulator’s neck on the line. 

The UKGC’s attorney Tamara Oppenheimer KC, meanwhile, pleaded at this week’s pre-trial hearing that all parties “behave sensibly and honestly.”

Oppenheimer added: “Inadvertent disclosure should not be an opportunity for the receiving party to take advantage,” she added. “It would be unfair and inappropriate if [the plaintiff] were permitted to take advantage of those obvious errors by bolstering its case through the use of the Commission’s privileged documents.”

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