UK Court of Appeal rejects Richard Desmond firms' National Lottery license appeal
Court rules the lottery license bidding process was conducted fairly, ending years of legal challenges.
1Appeal permission denied
The UK Court of Appeal refused to hear an appeal by Richard Desmond-linked companies challenging the National Lottery license award. The court declined to review part of the High Court's April 2026 decision that dismissed all claims against the Gambling Commission. This marks another legal victory for the regulator and Allwyn, who won the lucrative 10-year license to operate the National Lottery.
2£1.3 billion damages claim
The New Lottery Company Limited (TNLC) and Northern Shell had sought up to £1.3 billion ($1.8 million) in damages, alleging 'manifest errors' in the bidding process. The companies argued that post-selection changes to Allwyn's agreement warranted rerunning the competition. They revealed spending £17.5 million ($23.6 million) on their unsuccessful bid, which lost to Allwyn's proposal in the fiercely contested license race.
3End of Camelot's 30-year reign
Allwyn secured the 10-year National Lottery license in 2022, taking over from Camelot in February 2024 and ending its three-decade operation. The transition triggered multiple legal challenges surrounding one of Britain's largest public contracts. Allwyn has pledged £350 million ($472 million) to modernize lottery systems that haven't seen major upgrades since 2009, promising technological innovations for players.
4High Court's April ruling
In April 2026, Mrs Justice Smith dismissed the entire case, ruling the Gambling Commission conducted the competition lawfully and fairly. The court rejected arguments that either Allwyn or Camelot should have been excluded from the process. This comprehensive rejection led TNLC and Northern Shell to seek permission to appeal parts of the judgment, which has now been denied.
5Appeal refusal rationale
Lord Justice Coulson refused appeal permission on all three proposed grounds, noting TNLC couldn't introduce new legal arguments - especially ones specifically excluded during High Court proceedings. He stated TNLC's chances of success would have been 'vanishingly small' even under a lower standard of proof. This definitive ruling ends years of litigation over the license award process.
6Technology overhaul proceeds
With legal challenges concluded, Allwyn can focus on its £350 million technology modernization program for the National Lottery. The operator cited the project's scale, licensing challenges, and supplier dependencies as causes for previous delays. The Gambling Commission had considered enforcement measures after Allwyn missed transition milestones but now says the appeal outcome clears the path forward.
7Regulator's statement
A Gambling Commission spokesperson welcomed the 'important decision for the operation of The National Lottery,' affirming they ran 'a fair and robust competition.' They stressed that contested license changes weren't substantial or contrary to procurement rules. The ruling allows Allwyn to continue investment plans 'for the benefit of participants and Good Causes' under regulatory oversight, they added.
8Sector-wide implications
This judgment sets a significant precedent for UK public procurement, particularly for high-value licenses like the National Lottery. By upholding the fairness of the process, courts have reinforced regulators' authority in future competitions. The decision also provides stability for good causes that receive substantial lottery funding, ensuring continuity in their income streams from the world's fourth-largest lottery.