Desmond Takes Legal Battle against UK Gambling Commission to New Heights
Former Porn Magnate Triggers Court Battle with Bank over UK Lottery Agreement Dispute against UK Gambling Commission
Billionaire media mogul Richard Desmond is escalating his legal feud with the UK Gambling Commission (UKGC) by involving investment bank NM Rothschild in the dispute. Desmond, a persistent thorn in the UKGC's side, refuses to back down despite numerous failed attempts to challenge the awarding of the National Lottery contract to Czech firm Allwyn Entertainment.
Unyielding Desmond Takes On UKGC
In his latest judicial maneuver, Desmond's company Northern & Shell accuses the UKGC of neglecting to perform due diligence on a possible conflict of interest involving Rothschild. Northern & Shell seeks the High Court in London to compel Rothschild to release related documents as part of its lawsuit against the UKGC.
Desmond aims to have the UKGC's lottery contract process declared unlawful and is seeking damages, with the trial set for later in 2025. Northern & Shell believes Rothschild, who advised the UKGC on the lottery tender process, held a prior conflict of interest with Allwyn.
Although Rothschild is not directly involved in Northern & Shell's ongoing war with the UKGC, Desmond exerts substantial influence over the UK government's Department for Business and Trade's executive agency, Companies House, and has made Rothschild's role part of his suit against the regulator.
Desmond's Aggressive Strategy
Northern & Shell's attorney, Daniel Toledano KC, argued in court that the UKGC should have investigated a potential or apparent conflict of interest concerning Rothschild. Toledano further underscored that the bank held sensitive information during the UK lottery tender, including comprehensive sections of every applicant's application.
The crux of the controversy stems from Allwyn's payments to Rothschild for advice on an investment with Greece's lottery operator in 2019, as well as a Rothschild subsidiary investing in a bond issued by Allwyn before the firm rebranded. Northern & Shell demands that Rothschild release documents, including internal correspondence and details of the bond investment.
Counter Arguments and Defense
Rothschild's legal team dismissed Northern & Shell's document disclosure request as an "exceptional and intrusive" overreach, claiming it is irrelevant to Desmond's case against the UKGC. Allwyn's lawyers characterize the request as a speculative "fishing expedition." The UKGC remains silent on the ongoing legal proceedings, but faces additional scrutiny following a document leak that inadvertently provided 4,000 sensitive documents related to the lottery lawsuit to Desmond's legal team.
The incident underscores concerns about the transparency and competence of the UKGC's licensing procedures, particularly as the £6.5 billion National Lottery contract is at stake. The regulator must simultaneously defend its licensing decision in court and address the fallout from the document leak.
- Desmond's company, Northern & Shell, has requested the High Court in London to compel NM Rothschild to release related documents as part of its lawsuit against the UK Gambling Commission (UKGC).
- In court, Northern & Shell's attorney, Daniel Toledano KC, argued that the UKGC should have investigated a potential or apparent conflict of interest concerning Rothschild.
- Rothschild's legal team dismissed Northern & Shell's document disclosure request as an "exceptional and intrusive" overreach, claiming it is irrelevant to Desmond's case against the UKGC.
- The UKGC remains silent on the ongoing legal proceedings, but faces additional scrutiny following a document leak that inadvertently provided 4,000 sensitive documents related to the lottery lawsuit to Desmond's legal team.
