Richard Desmond attacks £70m Lottery handout to Czech billionaire

Telegraph

a day ago

Richard Desmond has launched a fresh legal claim against the Gambling Commission over a £70m handout granted to the National Lottery.
The media mogul alleges that funds set aside for charitable donations under Camelot, the lottery's previous operator, constitute a 'subsidy' and should therefore be recovered from Allwyn, the current operator.
The claim, lodged at the Competition Appeal Tribunal, represents an escalation of an increasingly bitter battle between Mr Desmond and the gambling regulator since he lost out to Allwyn in his bid to secure the fourth National Lottery licence.
Allwyn, controlled by Czech billionaire Karel Komarek, subsequently acquired Camelot after it gained control of the lottery.
However, Allwyn's ownership has so far been beset by problems owing to a botched IT upgrade.
Mr Desmond's Northern and Shell group, which owns the Health Lottery, claims that the Gambling Commission allowed Camelot, once it was under Allwyn's control, to take £70.21m from the National Lottery Distribution Fund to help bankroll marketing activities.
'The decision had the effect of granting to Camelot financial assistance which conferred an economic advantage, on the grounds that the subsidy provided Camelot with resources to market and promote the National Lottery,' court papers filed by Northern and Shell said.
This, in turn, bolstered 'the National Lottery's competitive position in the relevant markets, to the ultimate benefit of Camelot and Allwyn'.
Court battle
The National Lottery Distribution Fund is a pot that essentially collects the proceeds of the National Lottery not paid out as prizes and hands them out to so-called 'good causes'.
A source close to Mr Desmond described the £70m payment as money that could have helped fund British Olympic athletes or other major UK charities.
Northern and Shell's latest lawsuit comes amid an acrimonious fallout set to be settled in the High Court later this year.
Mr Desmond has launched a separate £1.3bn claim against the regulator for failing to award him the fourth National Lottery licence, as he claims the bidding process for the 10-year contract was unfair.
The dispute was thrown into chaos earlier this year after the Gambling Commission's lawyers accidentally sent thousands of confidential documents to Mr Desmond's legal team.
A judge recently ruled that Northern and Shell could rely on the majority of the material in court.
Mr Desmond has since been forced to deny accusations that he cannot afford to fight the case.
Earlier this month, the Gambling Commission and Allwyn told a judge that his companies cannot afford the legal costs associated with the case, a claim that Northern and Shell has vigorously denied.
Sa'ad Hossain KC, representing Northern and Shell, stressed that the company had 'sufficient funds'.
Lawyers acting for Allwyn told the court that Northern and Shell would be liable for at least £55m in legal costs if it lost the case.
The Gambling Commission was contacted for comment.