Richard Desmond loses £1.3bn damages battle over national lottery licence

Media tycoon Richard Desmond's £1.3bn legal challenge against the Gambling Commission over the National Lottery licence has been decisively rejected by the courts. | Contesto: cronaca

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• Richard Desmond loses £1.3bn damages battle over national lottery licence

Contesto

Media tycoon Richard Desmond has lost his high-stakes claim for up to £1.3bn in damages from the Gambling Commission, bringing a definitive end to a bitter, multi-year legal battle over the lucrative licence to operate the UK's National Lottery. The ruling, handed down in the High Court, dismisses the action brought by companies owned by the former proprietor of the Daily Express and Channel 5, which contested the regulator's 2022 decision to award the next 10-year franchise to the rival bidder, Allwyn Entertainment. The dispute originated when the Gambling Commission selected Allwyn, then known as Sazka Group, as its preferred applicant for the fourth National Lottery licence, set to commence in 2024. Desmond's company, Northern & Shell, which had operated the lottery under the Camelot brand for the final years of the previous licence, was passed over. His legal team subsequently launched a claim for what they argued were substantial losses, alleging flaws in the Commission's procurement process. The legal journey has been protracted and exceptionally costly. By May of last year, estimates placed Desmond's own legal costs at approximately £55m, a staggering sum that underscores the financial scale and intensity of the litigation. The case involved complex arguments over commercial expectations, regulatory procedure, and the valuation of the potentially lost future profits from one of the UK's largest and most recognizable public contracts. The court's rejection of the damages claim represents a total vindication for the Gambling Commission and its licensing procedure. A spokesperson for the regulator stated the decision "confirms that we ran a fair and robust competition" for the licence. For Allwyn, the Czech-owned multinational, the ruling removes a significant shadow over its impending takeover, allowing it to proceed with its plans to modernize the lottery and increase contributions to good causes. For Richard Desmond, the outcome is a severe financial and reputational blow. Having sold his media assets in recent years, the lottery bid was seen as a major strategic pivot. The loss of the licence, followed now by the failure of this colossal damages claim,...

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Categoria: cronaca