High Court Supports UK Gambling Commission in National Lottery License Dispute
Richard Desmond Continues Legal Battle Despite Setback
Media entrepreneur Richard Desmond has pledged to persist with his court fight following a significant defeat. The UK High Court rejected his claim for £1.3 billion in damages related to the awarding of the UK’s National Lottery license to the Czech company Allwyn. Judge Joanna Smith ruled that the UK Gambling Commission (UKGC) conducted the licensing process properly and dismissed the case entirely.
Demand for Compensation and Background of the Dispute
This ruling is a major blow to Desmond, whose businesses have contested the lottery licensing decision for several years. Desmond strongly opposed the 10-year National Lottery license that was awarded to Allwyn in 2022, with the new operator officially taking over in 2024 after Camelot’s contract ended. Desmond put forth a bid through his Northern & Shell group and The New Lottery Company but was unsuccessful.
Desmond’s legal team argued that the UKGC’s process was flawed, alleging inconsistency in applying rules and improper feedback given to competing bidders. They claimed these errors justified a re-evaluation of the licensing process and sought substantial financial compensation. According to their claim, these alleged mistakes led to millions in unnecessary bidding expenses. The damages sought were based on potential future earnings across the license’s duration, which, if awarded, could have impacted funds earmarked for lottery-supported charities and caused significant disruptions.
High Court Rejects Allegations and Upholds Licensing Process
The High Court firmly rejected all of Desmond’s claims. Judge Smith found no proof of any significant procedural errors or justification for disqualifying the winning bidder. She confirmed that the licensing process was lawful, fair, and defensible.
The claimants have failed to demonstrate any manifest error by the commission in their process claim.
Judge Joanna Smith
Furthermore, the judge criticized the way the case was presented, noting an unfocused strategy with shifting arguments and late withdrawal of claims, which complicated the proceedings and added burden on the court and opposing counsel.
Implications and Future Steps
This decision is a significant victory for both Allwyn and the UK Gambling Commission. The regulator’s legal team had argued that the licensing competition was conducted with rigor and fairness—a position the court ultimately supported. Following the ruling, Northern & Shell indicated that it intends to appeal, signaling that the dispute is likely to continue.
