Northern Shell, the investment company owned by media tycoon Richard Desmond, has been ordered to pay more than £40m after losing a legal battle with the Gambling Commission.
The dispute centred on the award of the fourth National Lottery licence, which was granted to Allwyn in March 2022 following competition from multiple bidders.
Allwyn secured the licence after seeing off competition from The New Lottery Company, Italy’s Sisal, and incumbent operator Camelot during the bidding process.
The New Lottery Company and Northern Shell jointly challenged the decision, claiming the Gambling Commission had wrongly awarded the licence to Allwyn instead of The New Lottery Company.
The joint claimants also alleged that the Commission and Allwyn entered into impermissible modifications to the licence arrangements following the conclusion of the bid process.
The High Court rejected those allegations in April and ruled in favour of the Commission, which welcomed the decision and said the ruling confirmed it had run a “fair and robust competition” for the licence.
Following that ruling, the court has now ordered Northern Shell to cover 75% of the overall costs of the trial, amounting to more than £40m.
The trial itself ran from 9 October to 2 December 2025, with one additional day held in January 2026, making it a substantial and costly legal proceeding for all parties involved.
A Northern Shell spokesperson previously indicated the company intended to appeal the original High Court decision, though no such appeal has yet materialised following the latest costs ruling.
Neither Northern Shell nor The New Lottery Company has issued a public comment in response to the costs order handed down by the court.
Allwyn has been operating the National Lottery since February 2025, though its start was delayed due to the various legal challenges surrounding the licence award process.
Camelot initially accused the Commission of lacking transparency in its communications, prompting the High Court to automatically suspend the licence decision before Camelot eventually dropped its challenge entirely.
International Game Technology also pursued a damages claim related to the licence decision but later withdrew it after agreeing a technology partnership with Allwyn.
Despite being free of competitor legal challenges, Allwyn has faced criticism for delays in delivering on pledges made during the bidding process, including lowering the main draw ticket price to £1 and rolling out certain digital upgrades.
Upcoming changes announced by Allwyn include the launch of a UK-specific version of Powerball, a product that has never previously expanded outside the United States.
From 7 June, players purchasing a ticket for the main UK lotto draw will have two chances to win through a new two-round format, offered at no extra cost to participants.
