Latest news with #Czech-owned
The Guardian
07-02-2025
- Business
- The Guardian
Regulator makes ‘unpredecented' blunder in legal battle over UK lottery
The gambling regulator has accidentally handed over more than 4,000 sensitive documents to lawyers acting for the media tycoon Richard Desmond, in an 'unprecedented' blunder during its legal battle over the £6.4bn national lottery contract, the Guardian understands. Northern & Shell (N&S), the investment group owned by Desmond, is suing the Gambling Commission for £200m in damages over its handling of the lottery licence award process. The regulator awarded the 10-year lottery licence to the Czech-owned operator Allwyn in 2022, rejecting a bid from the incumbent, Camelot, and a third proposal from Desmond, who is the former owner of the Daily Express and a range of pornographic publications. A trial is due to go ahead in October at the high court, despite warnings from the commission that any resulting payout to N&S may have to be funded from lottery money allocated to good causes. N&S rejected a settlement with the commission worth up to £10m in December last year, the Guardian has previously revealed. On Wednesday, during a procedural hearing, it emerged that the commission had made what one insider described as a 'huge' error during pre-trial disclosure, the process during which the two factions hand over relevant information to one another. The commission, which is represented by the London law firm Hogan Lovells, is understood to have accidentally handed over more than 4,000 sensitive documents about the lottery award process to lawyers for N&S. The regulator wants the court to order the return of some of the documents but is understood to be unsure exactly which files were handed over in error and has been trying to figure this out since before Christmas. The commission asked for a six-week extension to go through this process but Mrs Justice Jefford granted them until next week. She described the error as 'extraordinary' and 'unprecedented' and ruled that the regulator must pay N&S's costs incurred as a result of the hearing. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion There is no guarantee the judge will rule that the documents should be handed back or redacted. A new hearing on the matter is scheduled for early March. The Gambling Commission and Hogan Lovells said they could not comment on an open case. N&S declined to comment. The award of the fourth national lottery licence wrested control from Camelot for the first time since the inception of the weekly draw in 1994.
Yahoo
26-01-2025
- Business
- Yahoo
National Lottery chiefs face grilling by MPs over charity shortfall
Senior MPs are preparing to grill bosses at the Czech-owned operator of the National Lottery as part of a planned inquiry expected to delve into its faltering performance. It is understood that representatives of Allwyn, which is owned by Czech billionaire Karel Komarek, are set to be called for evidence by the Culture, Media and Sport select committee as concerns grow about its ability to fulfil ambitious pledges on charitable donations. The select committee's scrutiny comes amid further setbacks over Allwyn's running of the lottery, raising fresh questions about the Gambling Commission's decision to hand the company oversight of a vital source of charitable funding. It comes after Allwyn was hit by yet more delays to a complex IT upgrade that it says is critical to plans to implement a raft of improvements to the lottery's proposition, including the introduction of new games that it claims will boost sales. The changes were at the heart of a bold promise to double handouts to what the lottery calls 'good causes', from £17.9bn under predecessor Camelot to £38bn over the course of the decade-long licence. The technology transfer was supposed to be in place when Allwyn took over the running of the lottery in February last year but following repeated hold-ups, it may not be ready until February 2026 – the latest point at which it can be delivered under the terms of the licence. While no date has been fixed for Allwyn executives to appear before the committee, a Whitehall source indicated they could be called in the spring. However, the timetable could be pushed back as a result of ongoing legal action that rival bidder Richard Desmond has launched against the Gambling Commission over his failed bid. The two sides are set for a High Court showdown in October unless an out-of-court settlement can be reached. The latest setbacks will leave Allwyn facing a growing battle to meet the sales projections that supported its bid. At the time that Allwyn was selected to take over, it was reported that the contract would generate turnover 'of around £10bn a year'. However, less than 18 months later, the Gambling Commission had slashed its forecasts to between £7.9bn and £7.8bn for the first year amid dwindling sales of prize draws and scratch cards. During its final year under Camelot, which had held the licence for three decades, the National Lottery notched up revenue of £8.2bn. Sources warn that a delay of that length could mean the introduction of any new games is also pushed back. Plans to halve ticket prices to £1 have yet to come to fruition, with no commitment from the company about whether the move will go ahead at all. Some industry figures say the initiative doesn't make financial sense. 'All it means is you have to sell double the tickets just to stand still,' one said. An Allwyn spokesman said: 'Our projections for 2025 remain on track and we remain resolutely focused and confident that our plans will deliver on our ambition to double returns to good causes from £30m a week to £60m a week by the end of the fourth licence.' Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
