Media tycoon Richard Desmond has lost his High Court challenge over the award of the UK’s fourth National Lottery licence, in a ruling that hands a major victory to the Gambling Commission and strengthens Allwyn’s position.
In a judgment delivered on Friday, the court rejected in full the claims brought by The New Lottery Company Limited (TNLC) and Northern & Shell against the regulator over its decision to award the 10-year licence to Allwyn. The case had become one of the most closely watched disputes in UK gambling and public procurement, with Desmond’s side seeking damages that were reported to be as high as €1.5bn.
The Gambling Commission said the ruling confirmed that it had run “a fair and robust competition” and said the decision would allow the National Lottery to continue without further distraction. Desmond’s camp, however, indicated the fight is not over, saying it would appeal. Responding to questions from SiGMA News, he said, “We lost. They won. We appeal. It’s not over.”
The dispute centred on the 2022 tender that transferred control of the National Lottery from long-time operator Camelot to Allwyn, which has run the draw since 2024. Desmond’s companies had argued that the Commission made serious errors in the bidding process and later made changes to the licence arrangements that should not have been permitted.
Judge dismisses claims in full
In its statement after the ruling, the Gambling Commission said: “On 17 April 2026, the High Court rejected in full the claims brought by The New Lottery Company Limited (TNLC) and Northern & Shell PLC (N&S) against the Gambling Commission in relation to the award of the Fourth National Lottery Licence.”
It added that the court had “ruled in favour of the Gambling Commission on all of the claims, rejecting the allegations which had been made”.
According to reporting by UK newspaper The Guardian, Mrs Justice Smith dismissed Desmond’s case in uncompromising terms. She wrote: “The claimants have failed to make out any case of manifest error on the part of the commission in their process claim.” She also said: “The competition that was conducted for the award of the fourth licence reached a lawful outcome.”
The same report said the judge criticised the way the case had been argued, describing failings by Desmond’s legal team as “inexcusable” and calling parts of the approach “unfocused”. The Guardian reported that the judgment said: “The extent of this movable feast was regrettable and (given the legal resources available to the claimants) inexcusable.”
Blow to Desmond’s long-running challenge
The ruling is the latest setback in a dispute that has run for years and carried significant financial and political weight. Desmond had argued that his bid was treated unfairly and that alleged mistakes by the regulator cost his companies money both in pursuing the competition and in losing the chance to run the lottery.
Desmond’s side claimed up to €1.5bn in damages, including hypothetical lost earnings from operating the National Lottery, while also arguing that the Commission’s mistakes caused €20m in wasted bid costs.
Gambling Commission welcomes decisive ruling
For the Gambling Commission, the ruling removes a major legal threat hanging over the licence award. In its response, the regulator said: “This is an important judgment for the future of The National Lottery that we welcome.” It added: “The judgment gives resounding support to Good Causes by enabling Allwyn, with oversight from the Commission, to continue with their plans of investment in The National Lottery without further distraction.”
The Commission also said that National Lottery players have raised more than €60bn for more than 670,000 good causes across the UK since 1994, supporting projects in sport, the arts, heritage and local communities, and called the Lottery a “national treasure“.
The case has been closely followed because of what was at stake for public funding as well as for the regulator’s credibility. Before the trial opened, Desmond’s claim was already being seen as one that could leave a bill running into hundreds of millions of euros, with wider questions over whether any damages would ultimately reduce money available for good causes, with taxpayers potentially exposed if those funds proved insufficient.
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