National lottery faces questions over new boss’s record in gambling industry

MPs tell regulator they are ‘deeply concerned’ over interim CEO Phil Walker’s roles at William Hill and Game Nation

The national lottery is facing questions over its new boss’s record in the gambling industry, including a lucrative role in the 24-hour slot machine sector singled out by the prime minister as a blight on British high streets.

Allwyn UK, which holds a licence to run the Lottery until 2034, said last week that it had appointed William Hill’s former UK and Ireland boss Phil Walker as its interim chief executive, replacing Andria Vidler.

While Walker may not get the job on a permanent basis, MPs have written to the Gambling Commission, the industry regulator, about his selection as a steward of the UK’s most high-profile gambling brand, given the lottery’s “unique position” in public life.

In a letter seen by the Guardian, Labour’s Dawn Butler and Conservative MP Iain Duncan Smith told the regulator they were “deeply concerned” by the appointment.

They cited a personal sanction the regulator imposed on Walker in 2024 over “widespread and alarming” failures to enforce money laundering and terrorist financing controls at William Hill, which was fined a record £19.2m the previous year.

They also raised concerns about a boardroom role he holds with Game Nation, the UK’s third-largest chain of adult gaming centres (AGCs).

AGCs are high street gambling venues that are often referred to as “slot farms” due to their high concentration of slot machines, and are open 24 hours a day in most cases.

Last year, upon taking a job with City Gaming Ltd, which owns Game Nation, Walker said he was excited to “develop and grow [the company] over the coming years”.

That view appears to put the industry veteran at odds with the government, just as he prepares to take the reins of the lottery, frequently described as the UK’s largest public sector contract, worth £6.5bn in revenue over 10 years.

While still mayor of Greater Manchester, Andy Burnham hit out at AGCs, accusing the sector of “targeting some of the most vulnerable in our communities” .

This month, he announced plans to tighten up the permissive licensing regime that has allowed the sector to achieve the growth Walker has previously advocated for.

Butler, who was instrumental in Burnham’s decision to crack down on AGCs, has written to the Gambling Commission raising concerns about the appointment.

In a letter co-signed by Duncan Smith she said the pair were seeking clarity on whether Walker’s work for City Gaming was “compatible” with the decision to select him to run the lottery.

With regard to his tenure at William Hill, they asked the regulator to “explain what consideration, if any, was given to this history when assessing his suitability for his present position”.

A Gambling Commission spokesperson said: “We would not publicly comment on an operator’s personnel decisions.”

Jackie Olden, a campaigner whose terminally ill mother lost thousands of pounds to Merkur , the AGC sector’s second-largest company, also questioned Walker’s suitability to run the lottery, played by about 20 million people on a regular basis.

“It’s awful that someone heavily involved with 24-hour slot farms that destroy families and communities can run the country’s biggest public sector contract,” she said.

Companies House filings indicate that Walker is likely to have earned more than £50,000 from his non-executive directorship with Game Nation, a role that typically requires attendance at a small number of board meetings each year.

On Tuesday, Game Nation said that Walker would “step back” from his role with the company, with effect from 1 September, for the duration of his interim contract with the national lottery.

A spokesperson for Allwyn said: “As we navigate an increasingly competitive environment, Phil Walker brings valuable operational, digital and marketing experience alongside a significant understanding of our operating landscape.

“His appointment will help deliver the next stage of growth and innovation of the national lottery, and we look forward to welcoming Phil to the role of interim CEO.”

Allwyn, which is ultimately owned by the Czech billionaire Karel Komárek, has previously highlighted that Walker did not lose his personal licence from the Gambling Commission over the sanction imposed while at William Hill, indicating that the regulator believes him fit and proper to run a business in the sector.

The national lottery is regulated separately from the rest of the gambling sector. It is run under a 10-year licence from the Gambling Commission and mandated to donate billions of pounds to good causes.

By contrast, City Gaming is owned by investors in a “tactical value” fund, run by the Wall Street bank Morgan Stanley.

Last year, an employment tribunal judge heard a case of unfair dismissal brought by a former employee of its Game Nation chain.

According to a witness statement submitted during the case, a customer who disliked the staff member once paid a homeless man to defecate on the floor of the shop toilet, so that she was forced to clear it up.

Game Nation was ordered to pay the staff member £6,598.44, albeit for a technicality related to its dismissal procedure rather than the incident. Based on its £32m revenues last year, the company made the money back in less than two hours.

The Guardian has approached the government for comment.