Richard Desmond sues UK Gambling Commission for £1.3bn over National Lottery licence
Billionaire Richard Desmond is suing the British Gambling Commission for up to £1.3 billion over its handling of the National Lottery licence. The dispute centres on the 2022 decision to award the contract to Karel Komárek's Allwyn Group, which took over operations in April 2024.
Desmond claims the process was flawed and unfairly favoured Allwyn, particularly over its proposed 10% fee and Komárek's past business ties.
The Gambling Commission selected Allwyn in 2022 to run the National Lottery from 2024. The core funding structure remained unchanged, with 40% of proceeds still going to UK charities and good causes as required by law. However, technical issues in early 2024 caused delays in some payouts, though the overall financial model stayed intact.
Before the decision, Allwyn proposed taking a 10% cut from lottery revenue, leaving the rest for good causes. The Gambling Commission reportedly warned the company that this figure was unusually high—double the expected range. Andrew Wilson, the Commission's former commercial director, later described the 10% figure as suspiciously round. Desmond argues this feedback gave Allwyn an unfair advantage during the bidding process.
The legal case also questions whether the Commission properly applied its 'fit and proper' test to Komárek. Desmond's team claims the test failed to fully assess Komárek's past business links, including his ties to Russian state-owned energy firm Gazprom, which he severed in 2022. Additionally, Desmond believes that major changes to the licence after its award should have triggered a rerun of the competition.
In 2023, the National Lottery underwent a significant technology upgrade, shutting down for a weekend. This update was part of Allwyn's preparations to take over operations the following year.
The lawsuit centres on claims of procedural unfairness and financial discrepancies in the licensing process. Desmond's challenge argues that the Gambling Commission's handling of Allwyn's bid—including its fee structure and Komárek's background—justifies a review. The case will determine whether the Commission's decision stands or if further action is required.
