Published on: October 14, 2025, 06:09h.
Updated on: October 14, 2025, 06:09h.
- Richard Desmond criticizes UKGC’s management of the National Lottery.
- Potential lawsuit costs taxpayers upwards of £1.3 billion.
- Allwyn’s acquisition faces increased legal and public examination.
Former adult film mogul Richard Desmond is seeking £1.3 billion (approximately US$1.58 billion) in damages from the UK Gambling Commission (UKGC), alleging mismanagement in the bidding for the nation’s National Lottery operation. A favorable ruling for Desmond would impose this financial burden on British taxpayers.
The 73-year-old billionaire is dissatisfied with the UKGC’s decision to grant one of the UK’s most significant public service contracts, valued around £80 billion (US$92 billion) over a span of 10 years, to the Czech lottery titan Sazka, now operating as Allwyn.
The unsuccessful bidder Desmond is known for founding OK! Magazine and previously owning the Daily Express newspaper, UK’s Channel 5 television station, as well as various adult content publications like Asian Babes magazine.
Through his company, Northern & Shell, Desmond contends that the UKGC mishandled the bidding procedure, leading to adverse effects on its evaluation outcome.
‘Substantial Errors’
In London’s High Court last week, legal representatives for Northern & Shell claimed that the regulatory body committed “substantial errors” and followed improper procedures during the 2022 bidding event. They argued that the UKGC provided incorrect feedback to Allwyn, altered rules post-factum, and declined to restart the bidding process when contract stipulations were adjusted later.
The UKGC has refuted these claims, asserting that the bidding process was “fair and rigorous.”
In December of the previous year, Northern & Shell rejected a settlement option from the UK Gambling Commission reportedly worth up to £10 million (approximately US$13 million), according to The Guardian.
The Commission was motivated to resolve the issue to prevent further delays in the transfer of the National Lottery management from former operator Camelot to Allwyn. This ongoing litigation has already stalled the transition, affecting funding for charitable and community programs.
High Stakes Ahead
The Commission maintains that Desmond’s proposal was “unsuccessful” and lacked any real chance of success. Government KC Sarah Hannaford, defending the regulator, noted in court that it is “extremely unusual” for a losing participant to seek billions as if entitled to the license.
The case will advance in the high court this week, and the financial implications are significant. The National Lottery allocates approximately £30 million weekly to charitable causes and community projects. The UKGC has reported a surge in legal expenses, jumping from around £400,000 to £13.4 million within a single year, predominantly due to defending against Desmond’s claims.