Richard Desmond Rejects Settlement in Gambling Commission Dispute Over National Lottery Licence
According to The Guardian, Richard Desmond’s legal battle with the UK Gambling Commission over the National Lottery licence is heading to court after the billionaire rejected a £10m settlement offer. The case could significantly impact the National Lottery’s good causes fund, as the Gambling Commission warned that any damages would come from this charitable pot.
Background of the Dispute
In 2022, the Gambling Commission awarded the 10-year National Lottery licence, valued at £6.5bn in revenues, to Czech operator Allwyn. This decision ended Camelot’s long-standing control and dismissed Desmond’s Northern & Shell bid. Following the decision, Desmond launched a high court challenge, citing concerns over the transparency of the bidding process.
Court documents revealed that the commission deemed Northern & Shell’s proposal as having “no chance of winning.”
However, Desmond argues that the commission failed to provide early warnings about his bid’s prospects, leading to unnecessary financial and procedural costs.
Impact on Good Causes Fund
The Gambling Commission has stated that any financial penalties or damages resulting from this case would come from the National Lottery’s good causes fund, which supports charities and sports organisations.
The regulator also uses this fund to cover litigation costs, raising concerns about the potential depletion of resources intended for public benefit.
Failed Settlement Talks
A mediation meeting in London, facilitated by Clyde & Co lawyers, ended with Desmond rejecting a £10m settlement offer—far below the £200m he is seeking.
According to The Guardian, sources close to Desmond indicate that his motivation is not financial but rooted in ensuring transparency in the bidding process.
Transparency and Controversy
Desmond has been vocal about his dissatisfaction with the process, stating that the commission’s lack of upfront communication undermined fair competition.
His case adds to broader concerns about the transparency of the National Lottery licence award process.
Politicians have raised questions about the selection of Allwyn, given its owner’s past business links to the Russian state.
The Road Ahead
Unless a new settlement is reached, the courtroom battle is set for October next year. The Gambling Commission has labeled Desmond’s claim as an attempt to secure a “second bite at the cherry” and expressed confidence in its decision.
Source: The Guardian
