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Home Legal & Compliance

Richard Desmond Questions UKGC’s Choice of Allwyn as The National Lottery Operator

Staff GHNbyStaff GHN
14 May, 2024
in Legal & Compliance
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The verdict of the UK Gambling Commission (UKGC) to appoint Allwyn as the forthcoming operator of The National Lottery continues to encounter resistance. Although Camelot has withdrawn its opposition and has joined forces with Allwyn, another contender has now entered the fray.

The latest dissension is sparked by Richard Desmond, a renowned British businessman and media tycoon. Desmond intends to seek damages from the UKGC, accusing them of refusing to pick his company, Northern & Shell, as the imminent National Lottery operator.

This prominent pro-Brexit figure and UKIP supporter will probably pinpoint alleged “unambiguous errors” committed by the UKGC as the basis for his argument. He speculates that his company would have performed much better were it not for the purported procedural flaws. Furthermore, he states that the UKGC did not extend an appropriate briefing to him that could have persuaded him to withdraw and hence conserve resources.

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A spokesperson accentuated the gravitas of Northern & Shell’s application, singling out its collaboration with finance giants such as Barclays, HSBC, and Société Générale.

Desmond is predicted to invoke still-valid European Union laws in the UK to substantiate his arguments. His team is anticipated to rely on the “incumbent duty on the defendant to comply with any EU law.”

As per prior reports, Desmond could demand up to £200 million in reparations, potentially depriving charitable funds of these resources. For context, Andrew Rhodes, the CEO of UKGC, had previously asserted that any compensation issued in response to a suit by an unsuccessful bidder would be deducted from the lottery’s charitable fund.

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MP Moore Criticises Desmond’s Legal Action

The UKGC backed its decision to pick Allwyn as the upcoming National Lottery operator. The regulatory body asserted that Northern & Shell could not match the performances of the Czech challenger and Camelot due to its deficient business and charitable plans.

The Conservative Party, which had previously questioned Camelot’s endeavour to reverse the UKGC’s verdict, has also revealed its disappointment with Desmond’s objection. MP Damien Moore urged Desmond to abandon the lawsuit and grant The National Lottery the “breathing room to proceed with its operations.”

Moore voiced his exhaustion with observing legal battles that inevitably culminate in “prosperous businessmen depriving British charities and social enterprises of hundreds of millions of pounds.”

Concluding his statement, Moore remarked: “I believe it’s time we carried forward, accepted the Gambling Commission’s judgement, and concentrated on the promising future the national lottery presents.”

Tags: allwynlegalukuk national lotteryukgc
Staff GHN

Staff GHN

We are the editorial team at Gambling Hub, where precision meets insight in gambling industry reporting. Staffed by a knowledgeable team of betting and gaming experts, we are committed to deeply analyzing the dynamic world of gambling with thorough reviews and an impartial perspective. Our mission is to make information about the gambling sector universally accessible, ensuring it is clear and approachable for everyone. In every piece on Gambling Hub, we aim to deliver content that not only informs but also enhances our readers' understanding, helping them navigate the complexities of the gambling landscape.

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