Desmond escalates legal fight against UKGC
Former Adult Entertainment Magnate Engages Bank in Legal Battle Against UK Gambling Commission Over UK Lottery Agreement
Billionaire Desmond, former porn magnate, isn't backing down from his dispute with the UK's gambling regulator, the UK Gambling Commission (UKGC). He's recruited NM Rothschild, a renowned investment bank, into his legal fray.
Prickly as a Porcupine
Desmond's relentless pursuit comes after several failed attempts to challenge the UKGC over awarding the National Lottery contract to Allwyn Entertainment, making him a persistent thorn in their side.
In this latest legal move, Desmond's company, Northern & Shell, claims the UKGC failed to investigate a potential conflict of interest involving Rothschild. They've asked the London High Court to compel Rothschild to provide related documents for their case against the UKGC.
Using Clout and Influence
Northern & Shell is pressing for the High Court to rule the UKGC's lottery contract process illegal, and they're after damages for the case slated for trial later in 2025. They allege Rothschild, who advised the UKGC on the lottery tender process, had a conflict of interest with Allwyn.
Although Rothschild isn't involved in Desmond's ongoing dispute with the UKGC, the media mogul exerts considerable influence over the UK government's executive agency, Companies House, and the Department for Business and Trade. Consequently, he's brought Rothschild's role into his legal battle against the regulator.
Daniel Toledano KC, Northern & Shell's lawyer, stated in court documents that the UKGC "neglected to investigate a potential conflict of interest or apparent conflict of interest in relation to its use of Rothschild."
Toledano believes Rothschild possessed sensitive data during the UK lottery tender, including "all sections of every applicant's application."
Controversial Bond Investments
The crux of the issue is that Allwyn paid Rothschild a discretionary fee for advisement on an investment with Greece's lottery operator in 2019. Furthermore, a subsidiary fund managed by Rothschild invested in a bond issued by Allwyn before the company rebranded.
Northern & Shell seeks documents from Rothschild, including "internal correspondence and details of the bond investment."
Counter Arguments
According to Financial Times, Rothschild's attorney Valentina Sloane KC told the hearing that Desmond's disclosure application was "exceptional and intrusive," and that it's irrelevant to his case against the UKGC. Allwyn's attorney Mark Howard KC implored the London High Court to deny Desmond's document request, labeling it a "fishing expedition."
The UKGC, meanwhile, has refused to comment on the ongoing legal proceedings. However, the regulator's competency has been called into question following an incident where they mistakenly sent over 4,000 sensitive documents pertaining to the lottery lawsuit to Desmond's legal team.
[1] As of the latest available updates, the case is significant due to the allegations of conflict of interest and the question of the UKGC's competence following the incident where sensitive documents were mistakenly sent to Desmond's legal team. However, there are no definitive conclusions or rulings reported in this ongoing legal matter. The information is derived from various sources, but no single source is quoted extensively due to maintaining a balanced perspective and a blend of multiple viewpoints.
- Desmond's company, Northern & Shell, requested the London High Court to compel NM Rothschild to provide documents related to a lawsuit against the UK Gambling Commission (UKGC), alleging that Rothschild had a conflict of interest with Allwyn Entertainment, the company that won the National Lottery contract.
- Desmond is using NM Rothschild, an investment bank known for its influence, in his legal battle against the UKGC, aiming to prove that the UKGC's lottery contract process was illegal and seeking damages.
- The media mogul, Desmond, has significant influence over the UK government's executive agency, Companies House, and the Department for Business and Trade, which he has brought into his dispute with the UKGC.
- In the ongoing legal proceedings, Rothschild's attorney claimed that Desmond's disclosure application was exceptional and intrusive, and it's irrelevant to his case against the UKGC.
- Allwyn paid Rothschild a discretionary fee for advisement on an investment with Greece's lottery operator in 2019, and a subsidiary fund managed by Rothschild invested in a bond issued by Allwyn before the company rebranded, which is one of the central issues in Desmond's lawsuit against the UKGC.
