High Court Upholds UK Gambling Commission’s Decision in Lottery License Dispute

(AsiaGameHub) –   Richard Desmond has pledged to pursue his legal fight following a clear loss. The UK High Court rejected his demand for GBP 1.3 billion ($1.77 billion) in compensation related to the grant of the UK’s National Lottery license to Allwyn. Mrs Justice Joanna Smith threw out the entire case, finding that the UK Gambling Commission (UKGC) had run the tender process correctly.

Plaintiffs Demanded Significant Compensation

The decision represents a significant blow for Desmond, whose firms spent years contesting the result of one of the UK’s most valuable public contracts. The media tycoon was a firm opponent of the 10-year National Lottery operating license awarded to Allwyn in 2022. The Czech operator formally assumed control in 2024 following the conclusion of Camelot‘s run.

Desmond made his rival bid for the lottery license via his Northern & Shell group and a special purpose entity called The New Lottery Company. His attempt was unsuccessful. Desmond’s lawyers contended the process was defective, claiming the UKGC provided inappropriate feedback to competitors and did not follow its own rules uniformly. They asserted these mistakes warranted restarting the competition and paying significant damages.

Desmond’s team argued the purported mistakes led them to incur millions in superfluous bidding expenses. At its peak, the lawsuit demanded damages equivalent to the forecast profits across the license term. A victory would have potentially consumed a large portion of money reserved for lottery-funded good causes and triggered major operational upheaval.

The Case May Be Heading for an Appeal

The UK High Court found no merit in Desmond’s claims. In her judgment, Mrs Justice Smith stated there was no proof of a “manifest error” in the competition’s administration and saw no grounds to remove the successful bidder. She ruled the process achieved a legal and justifiable result.

The claimants have failed to make out any case of manifest error on the part of the commission in their process claim.

Mrs Justice Joanna Smith

The judge not only rejected the claim but also criticized the manner in which the case was brought. She characterized it as an “unfocused” effort, with central points of the argument changing during the litigation. Some allegations were withdrawn at a late stage, generating extra work for the other side’s lawyers and, in her opinion, making the court’s job more difficult.

This judgment is a clear victory for Allwyn and the UKGC. Attorneys for the regulator had earlier maintained that the tender process was carried out thoroughly and equitably, a stance the court finally supported. Subsequently, a Northern & Shell spokesperson stated the firm was intending to appeal and that the conflict would continue.