Billionaire Richard Desmond Loses Massive £1.3bn Lottery Battle
Media magnate Richard Desmond's £1.3 billion (US$1.77 billion) damages claim against the UK Gambling Commission (UKGC) was dismissed by a London High Court judge.
In 2022, the 74-year-old millionaire and Northern & Shell founder filed a lawsuit against the regulator, arguing that Allwyn was given the National Lottery contract due to "manifest errors."
He claimed that the UKGC provided Allwyn inappropriate comments, altered the regulations after the event, and declined to hold another competition when the conditions of the contract were later modified. These accusations have been refuted by the UKGC, which calls the procedure "fair and robust."
"Inexcusable Mistakes"
Desmond said that his unsuccessful proposal, dubbed "The New Lottery," cost him £17.5 million (US$24 million), but he was hoping to recover up to £1.3 billion in lost future revenues.
One of the biggest public contracts in the UK, the National Lottery license is anticipated to be worth £80 billion (US$109 billion) over ten years. In the end, any damages would have come from the National Lottery fund for charitable purposes if Desmond had won.
Mrs. Justice Smith blasted the claimant's argument as inconsistent and badly managed in her Friday verdict, pointing out "inexcusable" mistakes that resulted in "significant time being wasted by the other parties in dealing with issues which were subsequently abandoned."
“The claimants have failed to make out any case of manifest error on the part of the commission in their process claim,” she wrote, adding that they had also failed to establish that ether Camelot, the previous license holder, or Allwyn should have been disqualified from the bidding process.
She said that the procedure "reached a lawful outcome."
Rebuffed Settlement
According to The Guardian, Desmond rejected a settlement offer from the UKGC in December 2024 that may have been valued up to £10 million (US$14 million).
In order to prevent more delays in the transfer of lottery control from Camelot to Allwyn, the regulator was keen to reach a settlement. According to the UKGC, the legal actions were impeding the changeover and had an impact on revenues raised for community and philanthropic programs.
In addition to owning The Daily Express newspaper, the UK's Channel 5 television station, and a number of pornographic publications like Asian Babes magazine, Desmond established OK! Magazine.
The Health Lottery was introduced by Desmond in 2011 and is held five times a week on Tuesdays, Wednesdays, Thursdays, Fridays, and Saturdays. Twenty percent of ticket sales earnings are donated to regional health-related charities.
Through a spokeswoman, he announced his intention to file an appeal. "They prevailed. We didn't win. We make an appeal. The spokeswoman stated, "It's not over."
