Court of Appeal Delivers Final Rejection of Richard Desmond’s National Lottery Licence Challenge
TL;DR — The Court of Appeal rejected TNLC and Northern & Shell’s request to appeal the High Court’s dismissal of their £1.3bn claim against the Gambling Commission over the Allwyn UK National Lottery licence. This ends four years of legal battles from multiple bidders including Camelot and IGT. Allwyn can now focus on modernisation and doubling good causes returns to £60m weekly.
SCCG Take — This structural shift ends prolonged litigation, allowing Allwyn to execute without distraction and affirming the Commission’s process for client-partners in competitive tenders.
The Court of Appeal has put the final nail in the coffin of Richard Desmond’s challenge to the fourth National Lottery licence award. It rejected the request from The New Lottery Corporation (TNLC) and Northern & Shell to appeal the High Court’s April 2026 dismissal of their restitution claim against the Gambling Commission.
Lord Justice Peter Coulson refused all three grounds. He ruled that TNLC could not advance new arguments already rejected by the High Court and found the company had suffered no practical losses. A Gambling Commission spokesperson welcomed the decision as important for National Lottery operations.
As reported by SBC News, the spokesperson added that the Commission ran a fair and robust competition and that none of the contested licence changes were substantial or contrary to procurement regulations.
Four Years of Lottery Legal Battles
The 2022 tender awarded the 10-year licence to Allwyn UK, the UK division of the Swiss multinational. Allwyn UK took over management in February 2024 and will operate until at least 2034. Challenges followed immediately.
Camelot UK, the incumbent since 1994, contested the decision but dropped its claim in September 2022. Allwyn later bought the company from the Ontario Teachers Pension Plan. International Game Technology (IGT) brought a multi-billion damages claim lost in July 2023; its appeal was withdrawn in January 2024.
Desmond’s TNLC sought £1.3bn in damages and separately challenged a £70m marketing subsidy, both rejected. The High Court also ordered TNLC to pay the legal costs of Allwyn and the Commission after the two-year battle.
Allwyn has advanced modernisation, including retail infrastructure upgrades and the recent launch of Powerball. It aims to double weekly returns to good causes from £30m to £60m by the end of the contract.
The Path Ahead After Prolonged Litigation
An Allwyn spokesperson stated the ruling “finally brings to an end years of litigation brought by unsuccessful applicants arising from the competition for the fourth National Lottery licence.” The company can now focus fully on delivering for players and increasing funding for good causes.
The Gambling Commission gains breathing room as well. It is managing leadership transitions after Andrew Rhodes departed in April, with Tim Miller set to leave in September, while addressing other priorities including Financial Risk Assessments.
This outcome removes a distraction that has consumed resources on all sides for four years. From a regulatory standpoint, it reinforces the value of clear procurement rules that withstand scrutiny and limit indefinite challenges, offering greater finality for future licensing processes.
Reporting: Court of Appeal puts final nail in coffin of Richard Desmond’s National Lottery challenge (sbcnews.co.uk)
Allwyn can finally execute without distraction — and the Commission's tender process just survived a full stress test.
We've watched this unfold since 2022. Four years of legal drag from Camelot, IGT, and Desmond — all dismissed. This validates the regulatory framework our operator partners navigate in competitive licensing. Allwyn's now clear to modernize and double good-causes returns. Certainty matters when you're deploying capital.
- Court of Appeal rejected all three grounds; TNLC cannot revive arguments already dismissed
- Four-year battle ends: Camelot dropped out, IGT lost and withdrew, Desmond's £1.3bn claim defeated
- Allwyn free to execute: retail upgrades, Powerball launch, targeting £60m weekly to good causes
SCCG angle: SCCG advises on regulatory risk across 545 partners in every regulated market. When clients face competitive tenders or procurement challenges, we connect them to the legal, lobbying, and strategic teams who've been through this exact gauntlet. We help you build bids that survive scrutiny and move fast when litigation finally clears.