Former Pornography Mogul Engages in Legal Battle with Bank Over Controversial UK Lottery Agreement Against the UK Gambling Commission
Article Title: Billionaire Desmond Takes Legal Battle with UK Gambling Regulator to the Next Level
Desmond, former porn baron, is relentless in his feud with the UK's gambling regulator. He's aced up the stakes by recruiting legendary investment bank NM Rothschild into the heated legal skirmish.
A Stubborn Splinter
Despite numerous parties suffering defeats in lawsuits against the UK Gambling Commission (UKGC) regarding the awarding of the National Lottery contract to Czech firm Allwyn Entertainment, Desmond stubbornly persists as a splinter in the regulator's side.
In his latest legal squabble, Desmond's firm Northern & Shell accuses the UKGC of being remiss in investigating a conflict of interest involving Rothschild.
Taking a Stand
Desmond, through Northern & Shell, seeks the London High Court to officially declare the UKGC's lottery contract process unlawful and demands compensation should the case proceed to trial, expected to occur in 2025.
The firm alleges that Rothschild, who advised the UKGC on the lottery tender process, held a prior conflict of interest with Allwyn. However, it's worth noting that Rothschild is not party to Northern & Shell's battle against the UKGC, and Desmond leverages his influence to elevate the bank's role in his suit against the regulator.
According to the Financial Times, Northern & Shell's attorney Daniel Toledano KC argued in court documents that the UKGC did not properly examine a conflict of interest or an apparent conflict of interest concerning its usage of Rothschild.
Toledano claims the bank possessed sensitive information during the UK lottery tender, including every applicant's application details.
A Questionable Bond
The main point of contention revolves around Allwyn paying Rothschild a discretionary fee for counsel on an investment with Greece's lottery operator in 2019. Additionally, a subsidiary fund managed by the bank invested in a bond issued by Allwyn before the firm rebranded.
Northern & Shell wishes Rothschild to disclose documents, including internal correspondence and information regarding the bond investment.
Counter Arguments
According to the FT, Rothschild's attorney Valentina Sloane KC told the hearing that Northern & Shell's disclosure application was excessive and unrelated to the case against the UKGC. Meanwhile, Allwyn's lawyer Mark Howard KC described Northern & Shell's demand for documents as a "fishing expedition."
The UKGC, for its part, refuses to comment on ongoing legal proceedings, though it's undoubtedly feeling the heat with the incident fresh in the public eye. The regulator faced criticisms last month when it accidentally released over 4,000 sensitive documents connected to the lottery lawsuit to Desmond's legal team.
- Desmond, through Northern & Shell, requested the London High Court to officially declare the UK Gambling Commission's lottery contract process unlawful.
- Desmond's firm accuses NM Rothschild, who advised the UKGC on the lottery tender process, of holding a prior conflict of interest with Allwyn.
- Northern & Shell seeks documents from Rothschild, including internal correspondence and information regarding the bond investment.
- The incident involving the unintentional disclosure of over 4,000 sensitive documents by the UKGC to Desmond's legal team has brought additional heat to the regulator.
