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The High Court has ruled against Richard Desmond and his company, The New Lottery Corporation, ending a two‑year legal fight with the Gambling Commission and Allwyn UK.
On 17 April, the court dismissed all claims brought by Desmond, and on 22 May, Justice Joanne Smith ordered his firm to pay the majority of legal costs. The ruling means TNLC must cover 75% of the Commission’s expenses and 70% of Allwyn’s, a bill that could reach £40 million.
The Gambling Commission welcomed the outcome, stressing that the decision protects funds meant for good causes. In a statement to Lottery Daily, the regulator said: “Following the hearing on Friday 22 May, the Gambling Commission welcomes the Judge’s decision to award the Commission’s costs on an indemnity basis alongside the High Court’s decision to refuse permission to appeal the April judgment, which ruled in favour of the Gambling Commission on all of the claims made by TNLC, rejecting the allegations which had been made. The award of significant costs will lessen the potential impact of the litigation on Good Causes.”
Had Desmond succeeded, restitution could have been drawn from money reserved for good causes or even from public funds held by HM Treasury. The ruling ensures those resources remain untouched while closing the chapter on one of the most high‑profile lottery disputes in recent years.
Allwyn continued legal challenges
Desmond entered the contest for the fourth National Lottery licence through his New Lottery Corporation and Northern & Shell group, which also runs the Health Lottery. When Allwyn UK won the tender and began its ten‑year term in February 2024, Desmond launched a legal challenge, claiming the process was unfair and demanding £1.3 billion in restitution.
The UKGC offered £10 million to settle out of court, but Desmond refused and pressed ahead with his claims.
Over time, parts of his case fell away. In August 2025, he dropped some claims, and in March 2026, the Competition Appeal Tribunal dismissed his argument that a £70 million marketing subsidy given to Camelot UK was unlawful.
His main case, The New Lottery Company Ltd & Ors v Gambling Commission 2026, focused on the Commission’s handling of the licence tender, its agreement with Allwyn, and alleged breaches of the Commercial Market Operator principle tied to that subsidy.
Smith’s ruling has now cleared the way for Allwyn to continue running the National Lottery without further legal battles for at least eight years.
Since winning the licence in March 2022, Allwyn has already faced three major challenges: Camelot UK’s claim, which was dropped in 2022 before Allwyn acquired the company; International Game Technology’s multi‑billion damages case, abandoned in early 2024 after an appeal was withdrawn; and Desmond’s lawsuit, which drew the most attention due to his profile as a media owner.
Although Allwyn has had some friction with the Commission over delays to upgrading the lottery’s retail infrastructure, the latest ruling secures its position as operator and closes the chapter on years of disputes surrounding the licence.
“We welcome this clear and comprehensive judgment, which confirms that the Gambling Commission ran a fair and lawful licence competition, properly awarding the Fourth National Lottery Licence to Allwyn. The court further found that both Good Causes and Allwyn have suffered significant losses due to the delays caused by litigation brought by the unsuccessful applicants,” an Allwyn spokesperson said to Lottery Daily.
“It also draws a line under a long-running series of allegations about the integrity of the competition process, many of which were withdrawn during the proceedings, with the remainder rejected by the court. The judgment provides clarity and legal certainty, and our focus now is on delivering for players and increasing funding for good causes. That means moving faster on innovation such as New Lotto and Powerball, which we announced earlier this week.”
