Richard Desmond Begins High Court Battle Over National Lottery Licence

Published: 05 October ‘2025. the English Chronicle Desk

Media tycoon Richard Desmond is set to launch a high-stakes legal challenge against the Gambling Commission this week over the award of the National Lottery licence, a dispute that could cost taxpayers hundreds of millions of pounds. Desmond’s companies, Northern & Shell and The New Lottery Company (TNLC), are seeking up to £1.3bn in damages, alleging “manifest errors” in the complex process used to award Britain’s largest public sector contract.

The controversy stems from the 2022 decision to grant the ten-year National Lottery licence to Allwyn, a company owned by Czech billionaire Karel Komárek, which officially took over operations in 2024. This marked the first time in the lottery’s three-decade history that it was run by a company other than Camelot. Desmond, the former owner of high-profile media titles including the Daily Express, has repeatedly challenged the award, claiming that the competition was rigged and that his companies were unfairly excluded despite substantial investment in the bid process.

Desmond’s legal team intends to pursue two principal arguments. Firstly, they contend that the bidding competition itself was flawed, citing undisclosed criteria, inadequate feedback on TNLC’s initial submission, and alleged conflicts of interest within the Gambling Commission. The lawyers claim Allwyn should have been disqualified for briefing the media, and highlight connections between its Czech owner and Russian banks, which they say were ignored. Desmond’s companies reportedly spent £17.5m on the bidding process as a result of these alleged errors.

The second element of the claim concerns changes to the terms of the contract post-award. Desmond argues that adjustments made by the Gambling Commission after Allwyn had been chosen should have triggered a rerun of the competition, giving TNLC another opportunity to win. It is this claim that forms the basis for the potential £1.3bn damages sought, though any payout would likely be adjusted by the court to reflect the likelihood of Desmond actually winning the licence.

A successful claim could have significant financial consequences, as damages would come from the lottery fund used to support good causes. Weekly contributions from ticket sales total approximately £30m, and if the court awards damages beyond the fund’s capacity, taxpayers could be required to cover the shortfall. Earlier this year, Desmond reportedly rejected a £10m settlement offer from the commission.

The Gambling Commission maintains that its process was robust, describing Desmond’s bid as “fanciful” and scoring it poorly in the competition. Allwyn, meanwhile, remains a party to the case to protect its reputation, given the potential implications of a ruling that could challenge the legitimacy of its licence award.

Prior to the case opening, both sides have experienced minor legal skirmishes. Desmond dropped a portion of his claim related to scoring, which led to an order to pay some of Allwyn’s and the commission’s legal costs. However, a legal misstep by the commission inadvertently disclosed thousands of documents, many of which a judge allowed Desmond to use in his case. Internal emails obtained by Desmond are also said to indicate bias by the regulator, a point his lawyers are expected to emphasise.

The case is scheduled to begin on Thursday at the High Court, with all parties declining further comment ahead of proceedings. The outcome could reshape the future of the National Lottery and carry far-reaching implications for both public finances and the oversight of major government contracts.