Key Moments:
- Richard Desmond has sued the UKGC, seeking £1.3 billion in damages over the National Lottery contract process.
- The legal dispute centers on alleged procedural errors during the 2022 bidding, with criticisms of rule changes and feedback.
- UKGC’s legal costs have surged from about £400,000 to £13.4 million in a year because of this ongoing case.
Desmond Challenges UKGC Over National Lottery Decision
Richard Desmond, a media entrepreneur formerly associated with adult publications, is targeting the UK Gambling Commission (UKGC) for £1.3 billion (US$1.58 billion) in damages. He claims the Commission mishandled the competition for the National Lottery license, one of the largest public contracts in the United Kingdom, valued at approximately £80 billion (US$92 billion) over a decade. If the lawsuit is successful, British taxpayers would bear the cost.
Desmond, through his company Northern & Shell, alleges that mistakes in the UKGC’s process unfairly influenced his bid’s assessment. Allwyn, a Czech lottery firm previously known as Sazka, ultimately secured the contract in question, prompting renewed legal and public attention on the bidding process.
Allegations of Errors and Irregularities
During recent proceedings in London’s High Court, lawyers representing Northern & Shell accused the UKGC of several “manifest errors” in the 2022 tender. Their arguments included claims that Allwyn received improper feedback, rules were altered after bids were submitted, and that the Commission refused to redo the contest despite amending contract terms later on.
The UKGC, however, maintains that the process was “fair and robust.”
Northern & Shell previously declined a settlement reportedly worth up to £10 million (US$13 million) from the regulator, according to The Guardian. The ongoing case has caused delays in transferring control of the National Lottery from its prior operator, Camelot, to Allwyn, with knock-on effects for funding local charities and community initiatives.
Financial Impact and Future Outlook
Counsel for the government, Sarah Hannaford KC, representing the Commission, told the High Court that Desmond’s bid “performed poorly” and had little hope of success. She described it as “extremely unusual” for a losing bidder to seek billions as if ownership of the license was ever certain.
The National Lottery’s “good causes” fund distributes roughly £30 million to charities and local projects every week. The UKGC revealed that its legal expenses have climbed dramatically, jumping from about £400,000 to £13.4 million in a single year, primarily because of the ongoing legal defense against Desmond’s lawsuit.
| Party | Allegation / Response | Key Figures |
|---|---|---|
| Richard Desmond / Northern & Shell | Alleges “manifest errors” and seeks £1.3 billion in damages | Previously rejected £10 million settlement |
| UK Gambling Commission (UKGC) | Defends process as “fair and robust,” claims Desmond’s bid “performed poorly” | Legal costs rose to £13.4 million |
| National Lottery | Process subject to renewed scrutiny, transition period delayed | “Good causes” fund channels about £30 million per week |
- Author
Daniel Williams
