Court of Appeal rejects latest UK National Lottery challenge
The Court of Appeal has rejected a bid from The New Lottery Company (TNLC) and Northen & Shell to overturn a High Court judgement over the decision by the Gambling Commission to award the fourth UK National Lottery licence to Allwyn.
Allwyn saw off competition from TNLC, Italy’s Sisal and incumbent Camelot to secure the licence in March 2022. However, both TNLC and Northern & Shell challenged the decision, alleging in the High Court that the regulator wrongly awarded the licence to Allwyn, and that TNLC should have won instead.
In April, the High Court dismissed the claims from TNLC and Northern & Shell. Allegations of the regulator and Allwyn entering impermissible modifications to the licence arrangements following the bid process were also rejected.
At the time, Northen & Shell vowed to appeal the decision, with the investment company – owned by media tycoon Richard Tycoon – filing a joint bid in the Court of Appeal together with TNLC.
However, this also proved unsuccessful. The Court of Appeal agreed the High Court’s ruling on the award of the licence and subsequent modifications should stand. It was also ruled TNLC should not be permitted to raise a new legal argument, particularly on the points raised in the initial High Court case.
The Court of Appeal also dismissed TNLC’s claims it should have been awarded the licence. In the ruling, the court said TNLC’s prospects of success in the bid process would have been “vanishingly small”. It added that TNLC did not suffer any losses “in practical terms”.
Allwyn to operate National Lottery ‘without distraction’
The Gambling Commission welcomed the decision. In a statement, a spokesperson for the regulator said it was an “important” ruling for the operation of the lottery.
“The Commission ran a fair and robust competition to award the Fourth National Lottery Licence and that none of the contested changes to the licence, in the course of its implementation, were substantial or contrary to the relevant procurement regulations,” the spokesperson said.
“The decision gives resounding support to good causes by enabling Allwyn, with oversight from the Commission, to continue with their plans for investment in the National Lottery without further distraction. Our priority remains to continue regulating the National Lottery for the benefit of participants and good causes.”
Desmond left counting the cost of failed legal appeal
The Court of Appeal ruling will come as a blow to TNLC and Northern & Shell. Last month, a report by CityAM suggested TNLC’s owner Desmond could face legal bills in excess of £40m over the case.
According to the report, the High Court ordered N&S to also cover 75% of the overall costs of the trial. This equates to over £40m, with the trial having taken place from 9 October to 2 December 2025, plus an additional day in January this year.
It is not yet clear whether the Court of Appeal hearing will increase the legal costs further. Neither TNLC nor Northern & Shell have commented on the latest decision.
https://next.io/news/regulation/court-appeal-rejects-latest-national-lottery-challenge/