A costly error by the UK Gambling Commission has strengthened Richard Desmond’s £200 million legal case over the contested National Lottery license, following a High Court ruling that permits the use of thousands of confidential documents that were mistakenly shared.
Legal Setback for the Gambling Commission After Document Mishap
The legal battle stems from the Commission’s decision to award the £6.5 billion ($8.6 billion) National Lottery license to Allwyn Entertainment, a Czech-owned company, instead of Desmond’s firm, Northern & Shell. Desmond has alleged that the licensing process was flawed and is seeking £200 million in damages, claiming that the Gambling Commission acted unlawfully.
The case took a dramatic turn when the Commission’s legal advisers, Hogan Lovells, accidentally sent over 4,300 internal documents to Desmond’s legal team during pretrial disclosures. These papers—intended to remain confidential—include emails among staff, planning documents, and communications involving the Department for Culture, Media and Sport.
In a recent court session, High Court judge Mrs Justice Jefford ruled that while 128 of the most sensitive files, such as those containing legal advice, can remain confidential, the rest may be admitted as evidence. She determined that many of the documents either lacked clear legal privilege or were not clearly prepared by lawyers, and thus could not be withheld.
Potential Impact on Charity Funding as Legal Case Delays Lottery Transition
Northern & Shell’s lawyers called the volume and content of the mistakenly released files unprecedented, describing them as a potential “bombshell” that reveals crucial details about how the Commission handled the bidding process. They argue the documents support Desmond’s claim that the procedure was mishandled.
The judge had to assess whether the disclosure was a clear and recognizable error and whether a reasonably competent solicitor should have realized the documents were protected. In numerous instances, the court found no clear indication that a mistake was obvious.
Desmond previously rejected a £10 million ($13.3 million) settlement offer from the Commission in December. The ongoing litigation has delayed the handover of lottery operations from Camelot to Allwyn, posing a risk to the charitable organizations that depend on National Lottery funding. The case is scheduled to be heard in court this October. A ruling in Desmond’s favor could have significant financial consequences for the Gambling Commission and increase uncertainty around the transition.
- SCCG Management. The Gambling Industry’s Global Connector. Access Here.
- Source: SCCGManagement.com
