While the National Lottery’s new operator, Allwyn, basks in the glow of ongoing financial success, the legal fight over its controversial capture of the richest prize in European gambling–involving the UK Gambling Commission (UKGC) and former porn king Richard Desmond of Northern & Shell–rumbles on.
Boosted by the unintended–and über-embarrassing–release of legal papers on social media, Desmond’s Northern & Shell holding company are determined to pursue their £200 million lawsuit (US$272.15m) against the British betting regulator, the Gambling Commission, who awarded Allwyn the Lotto licence, amid serious protests, on September 20, 2022; to take effect February 1, 2024.
Almost from the start of the new lottery licensing round, the process was subject to controversy and allegations of illegality.
The Prize
Camelot, the operator owned by the Ontario Teachers’ Union Pension Fund, who had run the British lottery from its inception on November 19, 1994 were determined to hold on to their prize.
And allegations, some true, others underhand, flew thick and fast.
Leading bidder Allwyn Entertainment was ultimately owned by Czech billionaire Karel Komárek, a man who had financial ties to sanctioned Russia’s national Gazprom energy company.
And, it was further alleged in a Guardian newspaper investigation, Allwyn had also obtained loans from two Kremlin-affiliated Russian banks to underwrite their bid for the UK lottery, loans that were only paid back days before the final bidding deadline, it was proved.
The UKGC’s official announcement that Allwyn was “The One” was initially delayed by legal challenges by both Camelot and software supplier IGT
Allwyn solved the impasse by the simple expedient of buying Camelot, and agreeing to continue using IGT software solutions.
But dealing with Richard Desmond’s litigious Northern & Shell holding company is of a different order.
Desmond–a former Soho, London, porn meister and ex-owner of rag tops The Daily Star, Sunday Star, among other low-market media verticals–is claiming £200 million in damages from the UKGC. He argues the process to award the new National Lottery licence was deeply flawed and “unfair”.
And his legal case has been mightily boosted by UKGC lawyers accidentally downloading a cache of pertinent legal papers onto social media site Facebook.
Legal Bombshell
The case is now set to be heard in the High Court in October, and Sa’ad Hossain KC, representing Northern & Shell, has described the gaffe by the commission’s lawyers, Hogan Lovells, as an “unprecedented bombshell”.
Agreeing that many of the documents, including internal meeting briefs and communications with the UK Department for Culture, Media and Sport (DCMS), could be used in litigation, the UKGC declined to respond to iGamingFuture queries, emphasising that the matter was “sub judice”.
Allwyn and Northern & Shell also declined to comment on proceedings.
Which inevitably prompts the time-honoured response: “It ain’t over ‘til it’s over!”
Watch this space.
