Desmond Taking the Fight to Another Level
Controversial Former Pornography Magnate Launches Lawsuit Against Bank and UK Gambling Commission Over United Kingdom Lottery Contract Dispute
Billionaire media tycoon Richard Desmond isn't backing down in his feud with the UK's gambling regulator. After roping NM Rothschild into the legal fray, Desmond's company, Northern & Shell, is pushing for the court to demand documents from the esteemed investment bank as part of its case against the UK Gambling Commission (UKGC).
Desmond has been a nagging irritant for the UKGC, particularly after its controversial decision to award the National Lottery contract to Czech firm Allwyn Entertainment. In his latest move, Northern & Shell claims that the UKGC neglected to thoroughly investigate a conflict of interest involving Rothschild.
The media mogul's firm wants the High Court in London to rule that the UKGC's lottery contract process was unlawful and is seeking £200 million in damages. As we move toward a anticipated trial later in 2025, the case has been making waves in the UK.
Desmond Wielding His Influence
Northern & Shell alleges that Rothschild had a prior conflict of interest with Allwyn. The Financial Times reports that Rothschild is not directly involved in Desmond's ongoing battle against the UKGC. However, Desmond does have significant leverage over the UK government's executive agency, Companies House, and has brought the bank's role into his lawsuit against the regulator.
In written arguments for the hearing, Northern & Shell's lawyer, Daniel Toledano KC, stated that the UKGC "did not adequately investigate a conflict of interest, or apparent conflict of interest, in respect of its use of Rothschild." Toledano argues that the bank possessed sensitive information during the UK lottery tender, including all sections of every applicant's application.
The source of contention is that Allwyn paid Rothschild a discretionary fee for advising on an investment with Greece's lottery operator in 2019, and that a subsidiary fund managed by the bank invested in a bond issued by Allwyn before the firm rebranded. Northern & Shell aims to secure documents, including internal correspondence and details of the bond investment, from Rothschild.
Counter Arguments
The Financial Times reports that Rothschild's attorney, Valentina Sloane KC, told the hearing that Northern & Shell's document requests were "exceptional and intrusive" and irrelevant to Desmond's case against the UKGC. Allwyn's lawyer, Mark Howard KC, urged the London High Court to deny the disclosure application, branding Northern & Shell's demand for documents a "fishing expedition."
While the UKGC has remained silent on ongoing legal proceedings, the regulator's credibility has taken a hit following revelations that it mistakenly sent over 4,000 sensitive documents relating to the lottery lawsuit to Desmond's legal team.
- Desmond's company, Northern & Shell, is requesting the High Court in London to demand documents from NM Rothschild, as part of its lawsuit against the UK Gambling Commission (UKGC), due to alleged prior conflict of interest between Rothschild and Allwyn Entertainment.
- In written arguments for the hearing, Daniel Toledano KC, Northern & Shell's lawyer, stated that the UKGC did not adequately investigate a conflict of interest, or apparent conflict of interest, in respect of its use of Rothschild.
- Valentina Sloane KC, Rothschild's attorney, countered by telling the hearing that Northern & Shell's document requests were "exceptional and intrusive" and irrelevant to Desmond's case against the UKGC.
- Allwyn's lawyer, Mark Howard KC, urged the London High Court to deny the disclosure application, branding Northern & Shell’s demand for documents as a "fishing expedition."
