National Lottery gets a legal break as Desmond reportedly drops part of claim

Richard Desmond has reportedly dropped part of his legal challenge against the UK Gambling Commission’s (UKGC) decision to award the Fourth National Lottery licence to Allwyn UK.

The businessman is owner of the New Lottery Company and Northern & Shell, the latter of which is operator of The Health Lottery society lottery. Desmond’s lottery companies were key participants in the fourth lottery licence contest, going up against winners Allwyn and then incumbent Camelot.

The UKGC’s decision to award Allwyn the contract was not taken well by other bidders, however. Camelot UK initiated legal action against the UKGC, along with its technology partner IGT (now Brightstar after a rebrand this year), having been unseated after running the National Lottery since the lottery’s inception in 1994.

Camelot demanded that the High Court order the Commission to explain its decision and review the terms and conditions around the licence contest. Camelot’s legal opposition would ultimately disappear when it agreed terms to be acquired by Allwyn, which bought it from the Ontario Teachers’ Pension Plan.

However, Allwyn’s legal action remains, as do some of Desmond’s legal complaints – but according to The Times some of his claim has been dropped, lessening the legal headache for Allwyn and the National Lottery and potentially softening the blow for the Commission and HM Treasury.

Desmond is arguing that the licence contest was unfair, and is seeking financial restitution as a result. The Commission has previously offered to settle for £10m, but this was rejected by Desmond, and the trial is due to take place in October.

Should Desmond win the trial, The Times reports that either HM Treasury funds or funds set aside for good causes could be used for restitution – this latter option might not be the best PR look for the businessman, however.

The fact that he has dropped some of his claims will likely be a relief for Allwyn regardless.

The company is in the process of upgrading the National Lottery’s retail and online systems, in line with licence conditions, and the different legal challenges it has come up against have likely made this process even more difficult.

https://lotterydaily.com/2025/08/01/highlighted/desmond-national-lottery/