As Allwyn Entertainment prepares to take over management of the U.K.’s National Lottery in February, a new legal challenge is pending concerning the award of the license by the U.K. Gambling Commission (UKGC), which awarded the license in the fourth National Lottery License Competition to Allwyn over Desmond’s company, the media group Northern & Shell, and 30-year operator Camelot.
Camelot initially challenged the license award, but withdrew its challenge. Allwyn subsequently acquired Camelot.
Desmond is seeking £17.5 million in damages to cover the cost of preparing his bid, but sources close to Desmond told the Financial Times last month that he will ultimately seek an award as high as £200 million.
Desmond alleges that the UKGC made “numerous manifest errors” during the bidding process.
According to a report in The Guardian, the tycoon intends to invoke European Union laws on unfair competition practices to challenge the UKGC’s award of the license to Allwyn, including a “secretive auction process” used in determining the result.
