Payout likely to be funded by taxpayers if media mogul wins case against gambling regulator
The Guardian
The billionaire media mogul Richard Desmond has urged a court to “err on the side of generosity” in assessing a £1.3bn damages claim against the Gambling Commission that would probably have to be funded by taxpayers if he wins.
Companies owned by the former proprietor of the Daily Express and Channel 5 are suing the gambling regulator in a bitter dispute that opened at the high court on Thursday.
Lawyers for Desmond’s Northern & Shell investment company and his lottery bid vehicle, the New Lottery Company (TNLC), argue the commission made “manifest errors” in the labyrinthine competition process for Britain’s largest public sector contract.
Allwyn, a new vehicle ultimately owned by the Czech billionaire Karel Komárek, won the 10-year licence in 2022 and has run the draw since 2024.
At the high court, lawyers for Desmond’s companies told Mrs Justice Smith that the bid competition itself was flawed, for multiple reasons, and said the process should have been rerun because the contract was changed after it was awarded.
The Dubai-based billionaire is seeking damages of up to £1.3bn. If he wins it could have a significant cost for charities and the taxpayer because any payout would have to come from a lottery pot of money set aside to fund good causes.
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