Richard Desmond Seeks £1.3bn in Lottery Damages

Billionaire urges court to ‘err on side of generosity’ in National Lottery dispute with Gambling Commission

Billionaire media mogul Richard Desmond has launched a £1.3bn damages claim against the UK Gambling Commission, alleging serious flaws in the competition process that awarded the National Lottery licence to Czech owned company Allwyn. The case, which opened at the High Court on Thursday, could have significant financial consequences for UK taxpayers if Desmond wins.

Desmond’s companies, Northern & Shell and The New Lottery Company, are arguing that the commission made “manifest errors” when assessing bids for the 10year contract Britain’s largest public sector award.

Claims of a Flawed Bidding Process

Desmond’s legal team contends that the lottery bid competition was fundamentally flawed and should have been rerun. They claim the Gambling Commission altered the terms of the contract after it was awarded to Allwyn, an act they argue was both unfair and unlawful.

The 10-year National Lottery licence, which Allwyn began operating in 2024, had been highly contested. Desmond alleges that had the process been handled correctly, his company would have stood a fair chance of winning.

Taxpayer Could Bear the Financial Burden

The damages claim up to £1.3bn could hit both charitable causes and taxpayers. The National Lottery contributes about £30m per week to a fund that supports charities and community projects. If Desmond’s claim is successful and exceeds this fund’s capacity, the UK taxpayer may be forced to cover the shortfall.

Industry observers warn that such a payout would undermine public trust in the lottery system and reduce future funding for good causes.

Court Urged to ‘Err on Side of Generosity’

In court filings, Desmond’s lawyers cite legal precedent suggesting that when uncertainty exists about how a fair process might have played out, courts should “err on the side of the claimant.” They are urging the court to adopt a generous interpretation of damages in light of what they describe as the commission’s “errors in judgment.”

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Desmond, who made his fortune through media brands including the Daily Express, Asian Babes, and Readers’ Wives, has said the regulator’s handling of the process unfairly cost his company millions.

Gambling Commission and Allwyn Defend Their Actions

The Gambling Commission insists the lottery selection process was “robust and transparent.” It argues that Desmond’s bid performed “extremely badly” in evaluations and was “fanciful” compared with Allwyn’s proposal.

Allwyn, owned by Czech billionaire Karel Komárek, is defending its position alongside the commission. The company argues that Desmond’s claims threaten to damage its reputation and undermine confidence in its management of the lottery.

Rejected Settlement and Legal Costs

Earlier this year, Desmond rejected a £10m settlement offer from the Gambling Commission. He claims to have spent £17.5m on his failed bid to secure the National Lottery licence.

Legal analysts suggest that Desmond’s decision to pursue the case reflects his determination to hold the regulator accountable but it also risks a long, expensive legal battle that could stretch over months.

A High-Stakes Case for the UK Public

If Desmond’s lawsuit succeeds, the implications will extend beyond his personal gain. The outcome could reshape how future public contracts are awarded, with tighter oversight of government regulators and more transparency in bidding processes.

For now, the High Court proceedings mark the beginning of what could become one of the most financially significant legal disputes in the UK’s public contracting history.

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