Court of Appeal rejects Richard Desmond's final National Lottery challenge

The Court of Appeal has shut down Richard Desmond's latest legal challenge to the award of the fourth National Lottery licence, denying The New Lottery Corporation (TNLC) and Northern & Shell permission to appeal. The decision leaves in place the High Court's April 2026 rejection of a restitution claim against the Gambling Commission.

Appeal rejected

TNLC, the company created by Desmond through his media group Northern & Shell, was an unsuccessful bidder in the 2022 tender for the 10-year licence, which went to Allwyn UK. Desmond's claim sought more than £1.3bn in damages, but Lord Justice Peter Coulsen dismissed all three grounds of appeal. He concluded that TNLC could not raise a new legal argument against the Commission, particularly one already considered and rejected by the High Court, and that the company had not suffered losses in practical terms.

A Gambling Commission spokesperson said: "This is an important decision for the operation of The National Lottery and one that we welcome." The regulator added that the competition had been run fairly and robustly, and that none of the contested changes to the licence during its implementation were substantial or contrary to relevant procurement regulations.

Long-running dispute

Allwyn's UK arm took over National Lottery management in February 2024 and has faced repeated legal challenges since winning the tender. Camelot UK, the operator since the lottery's 1994 launch, challenged the award before dropping its claim in September 2022; Allwyn later bought Camelot from the Ontario Teachers Pension Plan in February 2023. IGT, Camelot's technology partner, also pursued a multi-billion-pound damages claim, lost it in July 2023, and withdrew its appeal in January 2024. Separately, Desmond's complaint over a £70m marketing subsidy provided by the Commission to lottery operators, which he argued was unfair and unlawful, was rejected by the Competition Appeal Tribunal in March 2026. The High Court also ordered TNLC to pay Allwyn's and the Gambling Commission's legal costs.

Focus turns to modernisation

With the appeal rejected, Desmond's legal avenues against the Commission and Allwyn are now effectively closed. Allwyn can focus on modernising the National Lottery, including a major retail infrastructure upgrade that is a requirement of its licence contract, although a missed timetable has drawn some scrutiny from the Commission. The operator also recently launched Powerball and is working toward a goal of doubling weekly returns to good causes from £30m to £60m by the end of the contract term.

An Allwyn spokesperson said the decision "finally brings to an end years of litigation brought by unsuccessful applicants arising from the competition for the fourth National Lottery licence", adding: "We can now put this behind us and focus fully on delivering for players and increasing funding for good causes."

Other pressures on the Commission

The Gambling Commission, meanwhile, is managing a heavy agenda that includes contentious topics such as Financial Risk Assessments (FRAs) and a leadership transition: chief executive Andrew Rhodes departed in April, and executive director of policy and research Tim Miller is due to leave in September. The Commission's spokesperson said the ruling gives strong support to Good Causes by allowing Allwyn to continue its investment plans without distraction, and that regulating the lottery for the benefit of participants and Good Causes remains the priority.