New National Lottery Boss Was Personally Warned by Gambling Commission

The incoming boss of the UK National Lottery, Phil Walker, is facing scrutiny from MPs over his previous record in the gambling industry.

Walker is due to take over as interim CEO of Allwyn UK, the operator of the National Lottery, on 7 September. However, Labour MP Dawn Butler and Conservative MP Iain Duncan Smith have written to the Gambling Commission to raise concerns over his appointment.

In particular, the MPs have questioned a formal warning Walker received from the UKGC following failures at William Hill. They also cited his more recent involvement with high street adult gaming centre (AGC) operator Game Nation.

The MPs said they were ‘deeply concerned’ about Walker's appointment, given the National Lottery's unique position.

Allwyn has already defended its choice, saying Walker brings ‘valuable operational, digital and marketing experience’.

Why Was Phil Walker Warned by the Gambling Commission?

Walker spent six years at William Hill. Whilst there, he held several senior positions including Online Managing Director, Chief Commercial Officer, and UK & Ireland Managing Director.

It was during this period that three William Hill businesses were found to have committed serious social responsibility and anti-money laundering failures.

In March 2023, William Hill agreed to pay a record £19.2 million regulatory settlement. At the time, UKGC chief executive Andrew Rhodes described the failures as ‘widespread and alarming’. So much so, that the regulator had considered suspending the company's licence.

Among the failures identified, customers were allowed to deposit and lose tens of thousands of pounds without appropriate checks.

In one such case, an online customer deposited and lost £70,134 in a month. Another retail customer staked £276,942 and lost £24,395 over two months without William Hill obtaining source of funds evidence.

The following year, Walker was personally sanctioned. On 24 May 2024, the UKGC issued Walker with a formal warning, following a review of his Personal Management Licence.

The regulator found that between May 2020 and October 2021, Walker had failed to take all reasonable steps to prevent the operators from breaching licence conditions. These included requirements relating to anti-money laundering, prevention of terrorist financing and customer interaction.

However, Walker's licence was not suspended or revoked. The UKGC also noted that he had been ‘cooperative, open and transparent’ throughout its engagement with him.

Phil Walker Steps Back From Game Nation Role

While Walker's history at William Hill is MPs main concern, his role at Game Nation also came under fire.

Currently, Walker is also a non-executive director of City Gaming. City Gaming owns Game Nation, the UK's third-largest chain of adult gaming centres. Companies House filings reportedly indicate that Walker is likely to have earned more than £50,000 from the role.

At present, AGCs are the subject of increasing political scrutiny. Venues often contain large numbers of slot machines and many operate 24 hours a day. The government is currently moving to give local authorities greater powers to control the growth of gambling premises on British high streets.

Game Nation has confirmed that Walker will step back from his position from 1 September for the duration of his interim contract with Allwyn.

UKGC Has Key Role in Vetting National Lottery Bosses

The National Lottery operates under a different regulatory framework from conventional gambling companies.

Under the Fourth National Lottery licence, Allwyn has an explicit responsibility to ensure that people involved in managing the National Lottery meet its ‘Fit and Proper Requirements’. However, the UKGC also has a role in that process.

One of its core National Lottery functions is checking that the operator, the people managing its business and those financially benefiting from it are fit and proper. This means vetting the man that they personally warned just two years ago.