Media Mogul Richard Desmond Seeks $1.58 Billion in Damages from UKGC
Richard Desmond Pursues £1.3 Billion Claim Against UK Gambling Commission
Billionaire media figure Richard Desmond is demanding a court assess his claim for damages amounting to approximately £1.3 billion (around $1.58 billion) against the United Kingdom Gambling Commission (UKGC). If successful, the payout could ultimately fall to taxpayers to cover.
The Background of the Legal Dispute
Desmond’s investment company Northern & Shell, along with his lottery bid group The New Lottery Company (TNLC), argue that the UKGC made significant errors during the evaluation process for the UK’s largest public sector lottery contract. In 2022, this 10-year licence was granted to Allwyn, a newly established firm owned by Czech billionaire Karel Komárek, which began operating the National Lottery in 2024.
Potential Financial Consequences
If the court rules in favor of Desmond, the financial implications could affect charities and taxpayers since the compensation would be paid from lottery funds allocated for social causes. As the lottery reportedly generates about £30 million ($36.4 million) weekly, any payment beyond these funds might require taxpayer support to cover the gap.
Allegations of Process Violations
TNLC claims the UKGC provided inappropriate feedback to the rival bidder Allwyn during the competition, which they characterize as a serious violation of the bidding rules. This legal case also sees Allwyn defending its award, as the company seeks to protect its reputation amid the dispute.
Current Legal Proceedings
Despite previous settlement attempts by the UKGC with Northern & Shell, the matter escalated to a full court case this week. Desmond’s lawyers contended before High Court’s Mrs Justice Smith that the competition was flawed in several respects, including the argument that the contest should have been repeated after contract terms changed post-decision.
UK Gambling Commission’s Defense
The UKGC stands by its licensing process, describing it as comprehensive and fair. Their legal team dismissed Desmond’s claims as unfounded, painting the TNLC’s bid as weak and unlikely to have succeeded even if the process had been restarted.
Statements from UKGC Counsel
Sarah Hannaford KC, representing the commission, called Desmond’s pursuit of damages for hypothetical earnings ‘‘hopeless’’ and emphasized that it is highly unusual for a candidate with a poor showing to claim they should have won. She regarded TNLC’s belief in possible success with better early feedback as nothing more than hopeful speculation.
