UK High Court rejects claims of irregularities in the national lottery licence award process

Richard Desmond’s Northern & Shell (N&S) and The New Lottery Company have lost their claim for damages from the Gambling Commission in relation to the UK’s National Lottery licence.

Desmond’s two companies were seeking damages of up to £1.3 billion from the Gambling Commission after failing to win the ten-year licence to operate the UK National Lottery.

They accused the Commission of running a flawed selection process when it chose to award Allwyn the licence, and also challenged modifications made to the licence after its award.

On Friday the High Court ruled in favour of the Gambling Commission on all of the claims, finding that the licence competition “reached a lawful outcome”.

The Commission said today’s ruling is an important judgment for the future of the National Lottery. 

“This judgment makes clear that the Gambling Commission ran a fair and robust competition to award the Fourth National Lottery Licence, and that none of the contested changes to the Licence, in the course of its implementation, were substantial or contrary to the relevant procurement regulations.

The Commission 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. Our priority remains to continue regulating The National Lottery for the benefit of participants and Good Causes.”

Had the damages claim been successful, the payout would have reduced contributions to good causes.