Investment bank Rothschild has been drawn into a High Court legal battle as media tycoon Richard Desmond challenges the Gambling Commission over its handling of the National Lottery contract.

Desmond’s company, Northern and Shell, which failed in its bid for the contract, has accused the Commission of running an unfair procurement process. The contract was awarded to Allwyn in 2022.

Northern and Shell is seeking a court declaration that the process was unlawful and is pursuing damages. As part of its case, the company has requested that Rothschild be compelled to disclose documents, with Desmond’s legal team stating that Rothschild had a prior financial relationship with Allwyn that was not properly scrutinised.

Barrister Daniel Toledano KC, representing Northern and Shell, told the court the Commission “did not adequately investigate a conflict of interest, or apparent conflict of interest, in respect of its use of Rothschild”.

Valentina Sloane KC, for Rothschild, described the disclosure application as “exceptional and intrusive” and argued the documents sought were “not of relevance to the claimants’ pleaded case”. Meanwhile, Mark Howard KC, representing Allwyn, called it a “fishing expedition” and dismissed Northern & Shell’s claims as carrying a “strong (and obvious) air of unreality.”

The Commission said: “We do not comment on ongoing legal proceedings.”