Intelligence Unit reports on REDACTED and The New Lottery Company Ltd

Request

I wish to make a freedom of information request and would be grateful if you could supply the following information within twenty working days:

• The Gambling Commission Intelligence Unit reports on REDACTED and The New Lottery Company Ltd.
• The Enhanced intelligence checks conducted by this Unit on The New Lottery Company Ltd and the report produced by this unit, published on 16th April 2021.
• ⁠Meetings and correspondence - including emails and written - between the Intelligence Unit and the New Lottery Company Ltd, its representatives, and its officials.
• Recommendations made by the Intelligence Unit to the Gambling Commission regarding the New Lottery Company Ltd, its suitability to run the national lottery, and any assessment of those individuals associated with the company ( if necessary, please redact the names and information which may allow for any individual to be identified, - but this does not necessitate that the assessment themselves cannot be disclosed)

Response

Thank you for your request which has been processed under the Freedom of Information Act 2000 (FOIA).

In your email you have requested:

• The Gambling Commission Intelligence Unit reports on REDACTED and The New Lottery Company Ltd.
• The Enhanced intelligence checks conducted by this Unit on The New Lottery Company Ltd and the report produced by this unit, published on 16th April 2021.
• ⁠Meetings and correspondence - including emails and written - between the Intelligence Unit and the New Lottery Company Ltd, its representatives, and its officials.
• ⁠Recommendations made by the Intelligence Unit to the Gambling Commission regarding the New Lottery Company Ltd, its suitability to run the national lottery, and any assessment of those individuals associated with the company ( if necessary, please redact the names and information which may allow for any individual to be identified, - but this does not necessitate that the assessment themselves cannot be disclosed)

For context, the Gambling Commission is the UK's independent statutory body responsible for awarding the licence to run the National Lottery and regulating the licensee’s activities to ensure safe and fair play.

As part of our responsibility as a regulator, we have three overriding statutory duties which underpinned the fourth licence competition:

• to ensure the National Lottery, and every lottery that forms part of it, is run and promoted with all due propriety
• to ensure the interests of every participant in a Lottery are protected
• subject to the above two duties, to do our best in making sure that the net proceeds of the National Lottery are as great as possible.

Under Section 11 of the National Lottery etc. Act 1993 (“the Act”) the Secretary of State for Culture Media and Sport issues Directions to us in relation to the exercise of our licensing functions, which we must comply with.

The fourth National Lottery licence competition was launched in August 2020 and the Gambling Commission formally awarded the fourth National Lottery Licence to Allwyn in September 2022.

As part the application process (as with any potential operator), the Commission made an assessment of suitability against criteria set out in the Act; information collected during this process is used to ascertain if the statutory duties which underpin the regulation of the National Lottery will be met (ensuring that the interests of all players are protected, that the Lottery is run with due propriety, and that returns to good causes are maximised).

When we receive licence applications an assessment is made on whether a business will uphold the licensing objectives and also the suitability of the applicant to carry out the activities that the licence allows. As part of this assessment the Commission will request the following evidence in support of the application, which pertains to the individuals who are relevant to the application:

• the identity of the individuals, • financial and other circumstances including resources available to carry out licensed activities • integrity – honesty and trustworthiness • competence – experience, expertise, qualifications and history • criminality – criminal record

I can therefore confirm that information falling within the scope of your request is held. However, the Commission is of the view that any information in relation to specific competition applicants/operators, and their ultimate ownership, other than what is made publicly available, is exempt from disclosure under subsection 31(1)(g) of the FOIA (‘law enforcement’) and therefore will not be released.

Section 31

Subsection 31(1)(g) exempts information from disclosure where such disclosure would, or would be likely to, prejudice the exercise by any public authority of its functions for any of the purposes specified in subsection 31(2).

The Commission considers the subsections below apply and therefore the information is exempt from disclosure:

i. Subsection 31(2)(a) refers to the purpose of ascertaining whether any person has failed to comply with the law,

ii. Subsection 31(2)(b) refers to the purpose of ascertaining whether any person is responsible for any conduct which is improper,

iii. Subsection 31(2)(d) refers to the purpose of ascertaining a person’s fitness or competence in relation to the management of bodies corporate or in relation to any profession or other activity which he is, or seeks to become, authorised to carry on.

Public interest test

The factors the Commission has considered when applying the public interest test have been detailed below.

Arguments in favour of disclosure:

• The Gambling Commission is the statutory body responsible for awarding licences to run the National Lottery. As such, there is a public interest in the Commission being open and honest with the information it holds so that it can be held to account.
• It is important that the public are assured that the Commission is carrying out its functions in ensuring that the successful applicant awarded the licence to run the National Lottery and therefore providing the facility to partake in the National Lottery to the public, have undergone the necessary assessments and will uphold the statutory obligations associated with the National Lottery
• Disclosure of the requested information could demonstrate to stakeholders and relevant parties how the Commission adequately assesses applicants. Furthermore, this disclosure may encourage stakeholders to work with us and contribute to this programme of work, increasing confidence in the Commission as a regulator and its ability to uphold the law.

Arguments in favour of maintaining the exemption:

• The Commission is entrusted with the function of ensuring that a potential licenseee of the National Lottery is a suitable candidate, and has robust and effective processes and procedures in place which are utilised when assessing potential and existing licensees. These processes and procedures have been put in place to minimise the risk of an operator continuing to provide gambling services where they do not meet the required standards of propriety. This demonstrates to the public at large that they can have confidence in the Commission’s assessment processes.
• Applicants for the 4th National Lottery licence competition provided information to the Commission on the understanding that it would remain confidential. If that information is disclosed to third parties, there is the potential that future applicants will be less likely to provide fullsome information to the Commission. This would impede the Commission’s ability to carry out the assessments that have been entrusted to it as regulator of the National Lottery.
• Disclosing the information sought would provide an insight into the Commission’s processes and procedures for assessing licensee suitability, potentially allowing future applicants to modify their behaviour, or the information they provide to the Commission, in order to avoid proper scrutiny. This would weaken the Commission’s processes and procedures.
• The amount of specific information the Commission can release relating to our licensees may impact on the Commission’s function of ascertaining a gambling operator’s fitness to carry out gambling activities.
• Disclosure of this information would also undermine the Commission's ability to uphold the National Lottery licensing objectives which would impact on the trust and confidence of the public in it as a regulator.

Weighing the balance

The Commission acknowledges that there is a public interest in promoting the accountability and transparency of public authorities and the importance of having sufficient information in the public domain.

However, there is a strong public interest in preserving the processes and procedures that the Commission has in place to assess a potential National Lottery operators’ likely compliance with the conditions of the National Lottery Licence, as well as other legal and statutory requirements and identify any applicants who will be unable to comply with those requirements.

As set out above, the Commission has robust processes in place to assess operators so that when the public use the services provided by an operator, they can be confident that there has been sufficient scrutiny of that operator to ensure that they are protected. Disclosure of the requested information would, for the reasons set out above, negatively impact on the Commission’s processes and procedures and undermine that confidence.

We consider that the public interest is better served by withholding this information, ensuring that consumers are protected through our processes and procedures rather than releasing applicant /operator information.

Review of the decision

If you are unhappy with the service you have received in relation to your Freedom of Information request you are entitled to an internal review of our decision. You should write to FOI Team, Gambling Commission, 4th floor, Victoria Square House, Victoria Square, Birmingham, B2 4BP or by reply to this email. 

Please note, internal review requests should be made within 40 working days of the initial response. Requests made outside this timeframe will not be processed.

If you are not content with the outcome of our review, you may then apply directly to the Information Commissioner (ICO) for a decision. Generally, the ICO cannot make a decision unless you have already exhausted the review procedure provided by the Gambling Commission. 

It should be noted that if you wish to raise a complaint with the ICO about the Commission’s handling of your request for information, then you are required to do so within six weeks of receiving your final response or last substantive contact with us.

The ICO can be contacted at: The Information Commissioner’s Office (opens in a new tab), Wycliffe House, Water Lane, Wilmslow, Cheshire SK9 5AF.

Information Management Team
Gambling Commission