A big mistake by the UK Gambling Commission has given Richard Desmond’s lawsuit over the disputed National Lottery contract award a boost, after a High Court ruling allowed the media tycoon to use thousands of documents released by accident.
Legal Setback for Gambling Commission as Court Allows Use of Mistakenly Shared Documents
The dispute revolves around Northern & Shell, Desmond’s media firm, which did not win the £6.5 billion ($8.6 billion) National Lottery license. Allwyn, a Czech-owned gaming company, got the contract instead in a high-stakes bidding war. Desmond claims the bidding process had flaws and wants £200 million in compensation, saying the commission broke the law.
The latest development happened when the commission’s lawyers at Hogan Lovells sent more than 4,300 internal documents to Northern & Shell’s attorneys during the pretrial disclosure process, reported the Financial Times. These files meant to stay secret, contain internal emails, planning papers, and messages with the Department for Culture, Media and Sport.
In a recent court session, High Court judge Mrs Justice Jefford decided that many of the documents could be used as evidence. She agreed to the Gambling Commission’s request to keep 128 of the most sensitive files private, those marked as privileged or containing legal advice, but allowed others to be used. These included documents that either did not show legal counsel or did not have clear signs that lawyers wrote them.
Charity Funds at Risk as Lottery Contract Dispute Drags Into Court
Lawyers for Northern & Shell described the extent of the information release as unmatched and compared the findings to a legal “bombshell.” They argued that the papers provide key insights into the commission’s private discussions and might be crucial in demonstrating that the bidding process was botched.
The judge needed to determine if the information release was due to a “clear mistake” and if a capable lawyer would have spotted the materials as shared. Her decision confirmed that in many instances, such a conclusion was not possible.
Desmond’s team said no to a £10 million ($13.3 million) deal from the Gambling Commission in December. The court fight has slowed down the switch from Camelot to Allwyn, which might hurt charities that get money from the lottery. The court will hear the case in October. If Desmond wins, it could cost the Gambling Commission a lot of money and make the already late changeover even worse.