UKGC to Settle Desmond’s £200m Lottery Lawsuit Out of Court
A dispute over the National Lottery’s management may soon be settled as the UK’s gambling regulator is seeking to resolve a £200 million damages claim filed by media mogul Richard Desmond.
There are concerns that the ongoing legal battle hinders efforts to modernize the National Lottery’s technological infrastructure.
LISTEN TO THIS ARTICLE:According to the Telegraph, the UKGC has proposed a mediation meeting with Northern and Shell, Richard Desmond’s business, to resolve the lawsuit amicably through an out-of-court settlement.
However, sources suggest that the final settlement figure may be lower than the £200 million Mr Desmond originally demanded.
The decision to seek mediation was sparked by concerns that the ongoing legal battle hinders efforts to modernize the National Lottery’s technological infrastructure.
The legal challenge began after Mr Desmond took the Gambling Commission to the High Court over its decision to award the fourth National Lottery licence to Allwyn instead of Northern and Shell or the incumbent Camelot, which had operated the National Lottery since 1994.
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Allwyn’s Rocky Start to National Lottery Tenure
Allywyn was awarded a 10-year license by the UKGC to run the National Lottery. However, since taking over the lottery in February, the company has faced numerous challenges, including a failed attempt to switch technology providers.
Allwyn’s plans to replace the IT systems supporting the National Lottery have been marred by repeated delays, with further postponements anticipated in the coming weeks. Yet, the company claims that successfully implementing the new technology is vital to its strategy to launch new games and increase the National Lottery’s charitable donations from £17 billion to £34 billion over the 10-year licence period.
It is believed that the upgrade deadline will need to be pushed back once more, and the commission does not want to grant another extension while facing the uncertainty of Desmond’s lawsuit.
Also, officials are concerned that Mr Desmond will exploit another delay to support his argument that awarding the licence to Allwyn was an error and that the regulator mishandled the bidding process.
In accordance with the order of the court, at all stages the parties must consider settling this litigation by any means of alternative dispute resolution. Naturally, the commission will continue to have regard to those requirements.
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