Media magnate Richard Desmond has suffered a setback in his pursuit of up to £1.3 billion in damages against the Gambling Commission, concluding a contentious legal battle regarding the regulator’s refusal to grant him a 10-year license to operate the national lottery.
Desmond, the former owner of the Daily Express and Channel 5, initiated legal action against the Gambling Commission in 2022. This led to a lengthy legal process, with Desmond’s expenses reportedly reaching £55 million by May of the previous year.
Representatives for Desmond’s Northern & Shell investment firm and his lottery proposal, the New Lottery Company, contended that the commission made “manifest errors” throughout the complex procedures governing the UK’s largest public sector contract, which has a value of £6.5 billion.
The media entrepreneur alleged that the commission’s missteps led to an additional £17.5 million in unnecessary expenses associated with his bid. Moreover, he sought damages of up to £1.3 billion, claiming this amount would represent lost potential earnings from managing the lottery.
In 2022, the license was awarded to Allwyn, a company ultimately owned by Czech billionaire Karel Komárek, which has been responsible for the lottery operations since 2024.
On Friday, Mrs. Justice Smith rejected Desmond’s claims, stating, “The claimants have failed to make out any case of manifest error on the part of the commission in their process claim.” She added, “They have also failed to establish that either [previous license holder] Camelot or Allwyn should have been disqualified from the competition due to incumbency advantage (Camelot) or conflict of interest (Allwyn). The competition conducted for the award of the fourth license reached a lawful outcome.”
Desmond, who is based in Dubai and previously owned the Daily Star, OK! magazine, Asian Babes, and Readers’ Wives, pursued various legal challenges related to the commission’s decision, including turning down a £10 million settlement offer. The ex-Tory donor and Brexit supporter, who referenced EU law in his case against the commission, argued that the process should have been conducted anew due to its flaws.
He urged the court to “err on the side of generosity” when evaluating his claim for up to £1.3 billion in damages, which would likely have been financed by funds from the lottery earmarked for charitable initiatives. Previously, Desmond had also unsuccessfully claimed that Allwyn benefited from an unlawful £70 million marketing subsidy provided by the Gambling Commission.
