High Court backs Commission in £1.3bn lottery dispute
Table of contents
- The High Court has rejected all claims brought by The New Lottery Company and Northern & Shell against the Gambling Commission over the award of the Fourth National Lottery Licence.
- The court found that the Commission ran a fair and lawful competition and that post-award modifications to the licence arrangements did not breach procurement regulations.
- The ruling clears the way for Allwyn to continue its investment programme without further legal distraction.
On 17 April 2026, the UK High Court dismissed in full the legal challenges brought by media mogul Richard Desmond’s companies against the Gambling Commission over the award of the Fourth National Lottery Licence to Allwyn.
The claims, filed by The New Lottery Company Limited (TNLC) and Northern & Shell PLC, alleged that the Commission had wrongly awarded the licence and that TNLC should have been the successful bidder.
The claimants also alleged that the Commission and Allwyn had entered into impermissible modifications to the licence arrangements following the competition.
The ruling
The lengthy trial took place before Mrs Justice Joanna Smith between 9 October and 2 December 2025, with an additional hearing day on 13 January 2026. The court ruled in the Commission’s favour on every claim.
TNLC had argued that manifest errors were made in the bidding process, damaging its chances, and was seeking damages of up to £1.3bn. A central strand of its case was that substantial modifications were made to the Enabling Agreement after the contest had concluded, shifting the economic balance in Allwyn‘s favour in a way not anticipated by competing bidders.
The Commission rejected those allegations throughout, maintaining it had held a fair, open and robust competition. The judgment confirmed that none of the contested changes to the licence, in the course of its implementation, were substantial or contrary to the relevant procurement regulations.
Background to the dispute
The Fourth National Lottery Licence, valued at approximately £8bn, was awarded to Allwyn in March 2022 following a competitive tender overseen by the Gambling Commission. TNLC came third in that process.
The legal challenge was the last significant piece of litigation arising from the licence award. Earlier proceedings brought by former incumbent Camelot were withdrawn after Allwyn agreed to acquire the company. A separate claim from IGT was also dropped in 2024, after the tech group agreed a new technology partnership with Allwyn.
Desmond’s companies had also pursued a parallel action at the Competition Appeal Tribunal, arguing that a £70m marketing budget retained by Camelot under the third licence amounted to unlawful state support. That claim was unanimously dismissed by the tribunal in February 2026.
Implications for Allwyn
The Commission welcomed today’s ruling, saying it gave resounding support to good causes by enabling Allwyn to proceed with its investment plans without further legal distraction.
Since launching in 1994, National Lottery players have collectively raised more than £52bn for more than 670,000 good causes across the UK.
Allwyn has committed to a major modernisation programme under the fourth licence, including a planned spend of more than £350m on technology upgrades. The operator had cited ongoing litigation as a factor in transition delays. Today’s decision removes that overhang.
With the Allwyn/OPAP merger completed in March and a recently announced Lotto overhaul including the introduction of Powerball for UK players, the operator now enters a period of significant commercial change unencumbered by the litigation that has shadowed the fourth licence since its award.
Keep reading
Do you have a story worth sharing?
Send it over to our editors!
