High Court Ruling Backs UK Gambling Commission in License Dispute

Richard Desmond has vowed to continue his legal battle despite his recent decisive defeat. The UK High Court ruled against his claim for GBP 1.3 billion ($1.77 billion) in damages linked to the awarding of the UK’s National Lottery license to Allwyn. Mrs Justice Joanna Smith dismissed the case in full, concluding that the UK Gambling Commission (UKGC) had properly conducted the bidding process. 

Plaintiffs Demanded Significant Compensation

The ruling marks a notable setback for Desmond, whose companies had spent years challenging the outcome of one of the UK’s most lucrative public contracts. The media mogul staunchly opposed the 10-year National Lottery operating license, which Allwyn received in 2022. The Czech-based operator officially took control in 2024 after Camelot ended its tenure.

Desmond submitted his competing lottery license bid through his Northern & Shell group and a dedicated vehicle known as The New Lottery Company. However, his efforts fell short. Desmond’s legal team argued that the process was flawed, alleging that the UKGC gave improper feedback to rival bidders and failed to apply its own rules consistently. They claimed those errors justified a rerun of the process and substantial compensation.

According to Desmond’s team, the alleged errors caused them to spend millions on unnecessary bidding costs. At its most ambitious, the claim sought damages reflecting projected earnings over the life of the license. If successful, it could have drawn heavily from funds set aside for lottery-supported charitable activities and would have caused substantial disruptions.

The Case May Be Heading for an Appeal

The UK High Court completely disagreed with Desmond’s allegations. In her ruling, Mrs Justice Smith determined there was no evidence of “manifest error” in how the competition was conducted and found no reason to disqualify the winning bidder. The process, she concluded, reached a lawful and defensible outcome.

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 dismissed the claim but also condemned the way the case had been executed. She described an “unfocused” approach, with key elements of the argument shifting over time. Some claims were dropped late in proceedings, creating additional work for opposing counsel and, in her view, complicating the court’s task.

This ruling marks a notable win for Allwyn and the UKGC. Lawyers representing the regulator previously argued that the bidding procedure had been executed rigorously and fairly, a position the court ultimately endorsed. In the aftermath, a spokesperson for Northern & Shell confirmed that the company was planning an appeal and that the fight was not over.