Billionaire Richard Desmond Loses Massive £1.3bn Lottery Battle

• High Court throws out Desmond’s £1.3bn National Lottery claim
  
• Judge criticizes “inexcusable” errors and shifting legal arguments
  
• Allwyn license decision upheld as lawful despite Desmond challenge

A London High Court judge has tossed a £1.3 billion (US$1.77 billion) damages claim brought by media tycoon Richard Desmond against the UK Gambling Commission (UKGC).

The 74-year-old billionaire and founder of Northern & Shell sued the regulator in 2022 claiming its decision to award the National Lottery contract to Allwyn was marred by “manifest errors.”

He argued the UKGC gave Allwyn improper feedback, changed the rules after the fact, and refused to rerun the contest when the contract terms were later tweaked. The UKGC has denied these allegations, describing the process as “fair and robust.”

‘Inexcusable Failures’

Desmond said he spent £17.5 million (US$24 million) on his failed bid, branded “The New Lottery,” but sought up to £1.3 billion in lost future profits.

The National Lottery license is one of the UK’s largest public contracts, worth an estimated £80 billion (US$109 billion) over 10 years. Had Desmond won, any damages would ultimately have come from the National Lottery fund for good causes.

“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.

The process “reached a lawful outcome,” she concluded.

Settlement Rebuffed

Desmond turned down a settlement offer from the UKGC in December 2024, which could have been worth as much as £10 million (US$14 million), according to The Guardian.

The regulator was eager to settle to avoid further delays in transferring control of the lottery from Camelot to Allwyn. The legal proceedings were hindering the transition, affecting funds generated for charitable and community projects, according to the UKGC.

He said via a spokesperson that he plans to appeal. “They won. We lost. We appeal. It’s not over,” the spokesperson said.