Richard Desmond’s Lottery tribunal battle draws in former Sainsbury’s boss Justin King

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Media tycoon Richard Desmond has drawn prominent business figures, including former Sainsbury’s boss Justin King, into his legal battle over the National Lottery, naming them on the first day of a trial over the award of a lucrative 10-year contract to run the state-franchised competition.

A High Court trial began on Thursday in a case brought by Desmond Northern & Shell against the UK Gambling Commission over allegations that the regulator… The licensing process for the lottery was unfair.

Northern & Shell is seeking hundreds of millions of pounds in damages after unsuccessfully trying to run the state-concested competition, losing out in 2022 to Alwyn, whose ultimate beneficial owner is Czech billionaire Karel Komarek.

Alwyn has assembled a roster of notable figures to lead the lottery bidding team, including King, former Sainsbury’s chairman, and organizer of the London 2012 Olympics, Sir Keith Mills.

At the start of the trial, Daniel Toledano QC, representing Northern & Shell, said on Thursday that during the licensing process, Alwyn “repeatedly violated” a publicity protocol designed to ensure a “level playing field” between bidders.

He cited a series of interviews and media articles, including comments Speaking to the Financial Times in 2021, Mills said the lottery had “not kept pace with change” as online gambling attracted younger customers.

Toledano also argued in a written submission that King, who chairs Allwyn UK’s board, in 2022 made “misleading reference to the company’s performance.” National lottery“.

“The court must find that Alwyn repeatedly violated” the protocol, Toledano said, and that if the regulator had acted “lawfully, Alwyn would have been disqualified.”

King and Mills did not immediately respond to requests for comment made through Allwyn.

Both Alwyn and the Gambling Commission He rejected Northern and Shell’s claims. Sarah Hannaford KC, on behalf of the committee, said in written submissions that the protocol provided “guidance” to bidders and they were “not prevented” from engaging with the media.

It added that some of the materials Northern & Shell complained about were published “after the evaluation had concluded and therefore could not affect competition in any way.”

Mark Howard QC, representing Alwyn, said in written submissions that bidders were, in principle, “permitted to further their interest” in running the lottery.

He added that the Gambling Commission’s approach was “clearly legalistic and it is simply fanciful to suggest that it acted irrationally or outside the bounds of its discretion”.

More broadly, there were “fundamental flaws” in the bidding process that “disadvantaged” Northern & Shell, Toledano said.

But Howard, on behalf of Alwyn, said New Lottery Company, a Northern & Shell subsidiary that bid for the contract, was “owned by a real estate investment group that has no relevant experience or track record beyond its work in the ‘Health Lottery’.”

This is “between 1,000 and 2,000 times lower based on annual revenues from the National Lottery,” he added.

The commission “followed a comprehensive and thoughtful procurement process, intended to reverse the regulations and ensure a level playing field,” Hannaford said.

The seven-week trial continues before Lady Justice Joanna Smith.