Billionaire media mogul Richard Desmond is set to launch a high court legal action against the Gambling Commission this week, seeking up to £1.3bn in damages over the award of the National Lottery licence. The case, which could cost taxpayers hundreds of millions of pounds if Desmond wins, centres on allegations of 'manifest errors' in the competition process.
Desmond's companies, Northern & Shell and The New Lottery Company (TNLC), claim the bidding process was flawed. They argue that the Gambling Commission wrongly deemed their bid to have failed crucial criteria, imposed undisclosed criteria, and failed to provide feedback after the first phase. They also allege conflicts of interest and that the winner, Allwyn, should have been disqualified for breaching media briefing rules and for links between its Czech owner and Russian banks.
The second part of Desmond's claim argues that the commission adjusted the contract terms after awarding it, meaning the competition should have been rerun. This part seeks damages for lost earnings, though any payout could be reduced by the judge based on Desmond's likelihood of winning. A victory could divert funds from lottery money set aside for good causes, potentially requiring taxpayer funding if the payout exceeds the weekly £30m lottery fund.
The Gambling Commission defends its process as robust, describing Desmond's bid as 'fanciful' and 'extremely badly' scored. Allwyn, also a party to the case, supports the commission. Both sides have had minor victories in pre-trial skirmishes, including Desmond dropping part of his case and the commission accidentally disclosing thousands of documents. Desmond rejected a £10m settlement offer earlier this year.
