Failed UK lottery bidders continue battle with UK Gambling Commission
Billionaire media tycoon Richard Desmond remains undeterred as he battles the UK Gambling Commission (UKGC) over his failed attempt to win a National Lottery franchise. He is now turning to EU law as the latest opportunity to challenge the decision.
Desmond, through his company Northern Shell New Lottery, lost his bid for a 10-year contract to operate the lottery. Allwin will take over at Camelot from next year on a new contract, although it's already in effect.
At the heart of his lawsuit is an allegation that the gambling regulator was treated unfairly during the selection process of the operator of the National Lottery. Desmond claims errors were made in the UKGC's handling of the competition, which had a negative impact on Northern Shell's rankings.
Controversy arose when Alwyn defeated the incumbent Camelot to secure the coveted contract and put a damper on Desmond's ambitions. Desmond has campaigned tirelessly against the outcome and launched legal action against the UKGC, seeking £200 million ($253.32 million) in damages, The Guardian reported.
Wider impact
Camelot and Allwyn scored significantly higher at 85.7% and 87.2% respectively, while Desmond's company lagged behind at 57.5%. One of the biggest problems reportedly is the small, unspecified amount of money the new lottery is willing to donate to charity.
Desmond claimed that if the UKGC provided early feedback on Northern Shell's proposals, he might choose to withdraw the proposals or make changes to become more competitive.
If Desmond's legal pursuit is successful, the compensation will come from lottery proceeds. The outcome could lead to funds earmarked for charity being diverted, raising concerns about the wider impact of the social activities supported by the lottery.
As with other National Lottery litigation, UKGC will meet the costs of any litigation using the same funding.
VIOLATION OF EU LAW
Desmond claimed that UKGC's actions could breach the UK's Withdrawal Act 2018, which played a major role in facilitating the UK's exit from the European Union (EU). The law, which came into force on 26 June 2018, aims to ensure a smooth transition by converting existing EU law into national law, thereby preventing a legal vacuum after Brexit.
Key provisions include the repeal of the European Communities Act 1972, which originally brought the UK into the EU. The 2018 Act simplifies post-Brexit legal adjustments by giving ministers the power to make necessary changes to the law by statutory instrument. This has sparked debate about the balance between executive power and parliamentary control.
The law also solidifies a transition period, maintaining the status quo until 31 December 2020, while the UK and EU negotiate their future relationship. It enables gradual adjustment and provides legal certainty for companies and British people.
The legislation also addresses transparency and fair competition, while being consistent with the UK’s wider aims for a post-EU regulatory environment. Desmond said the UK GC had clearly failed in this regard.
He believes that the regulatory authorities neither conducted a transparent bidding process nor achieved fair competition. If the case gets this far, he'll have to prove it in court.
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Source: www.casino.org
