Desmond's Continued Feud
Former Pornography Magnate Engages in Court Battle with Bank Over UK Lottery Agreement Dispute Against UK Gambling Commission
Richard Desmond, the flamboyant ex-porn tycoon, has upped the ante in his tussle with the UK Gambling Commission (UKGC) by recruiting NM Rothschild into the legal fray. This fierce power play is over the awarding of the National Lottery contract to Czech firm Allwyn Entertainment.
A Nuisance with Tenacity
Desmond's stubborn persistence has turned him into a thorn in the UKGC's side. Despite numerous failed lawsuits challenging the UKGC's decision, Desmond remains a persistent irritant.
In his latest legal salvo, Desmond's media empire, Northern & Shell, claims that the UKGC neglected to conduct due diligence on a potential conflict of interest involving Rothschild.
Enter Rothschild
Northern & Shell requests the UK's High Court in London to compel Rothschild to furnish relevant documents in support of its lawsuit against the UKGC.
Desmond's company aims to declare the UKGC's lottery contract process unlawful and seeks damages, with the legal battle expected to reach trial later in 2025.
Questionable Ties
Northern & Shell alleges that Rothschild, who provided advisory services for the UKGC's lottery tender process, held a prior conflict of interest with Allwyn. The Financial Times reports that Rothschild is not a direct party in Northern & Shell's ongoing battle against the UKGC. However, Desmond exerts significant influence over the UK government's executive agency, Companies House, and has included Rothschild's role in his lawsuit against the regulator.
Disputed Investments
The focus of contention revolves around allegations that Allwyn paid Rothschild a discretionary fee for advising on an investment with Greece's lottery operator in 2019. Two points stand out: first, a subsidiary fund managed by the bank invested in a bond issued by Allwyn before the firm rebranded; and second, Northern & Shell wants Rothschild to disclose documents, including internal correspondence and details of the bond investment.
Counterarguments
Rothschild's attorney, Valentina Sloane KC, argues against Northern & Shell's disclosure applications, describing them as "exceptional and intrusive" and irrelevant to Desmond's case against the UKGC. Also, Allwyn's lawyer Mark Howard KC dismisses Northern & Shell's demand for documents as a "fishing expedition." Meanwhile, the UKGC refrains from commenting on ongoing legal proceedings.
BackgroundThe battle between Desmond and the UKGC centers on Desmond's challenge of the UKGC's awarding of the National Lottery license to Allwyn Entertainment. While the specifics of Northern & Shell's allegations are not entirely clear, they set the stage for a legal showdown that promises to test the UKGC's processes and decision-making.
- Desmond's media empire, Northern & Shell, has requested the UK's High Court in London to compel NM Rothschild to provide relevant documents for their lawsuit against the UK Gambling Commission (UKGC).
- Northern & Shell alleges that Rothschild, who provided advisory services for the UKGC's lottery tender process, held a prior conflict of interest with Allwyn Entertainment.
- The focus of contention revolves around allegations that Allwyn paid Rothschild a discretionary fee for advising on an investment with Greece's lottery operator in 2019.
- Rothschild's attorney, Valentina Sloane KC, argues against Northern & Shell's disclosure applications, stating they are "exceptional and intrusive" and irrelevant to Desmond's case against the UKGC.
