Divorcing reclusive lottery king’s bitter court fight to evict in-laws

A soon-to be-divorced reclusive millionaire lottery king is fighting in court to evict his in-laws from a $3m Gold Coast mansion where they have lived rent-free for seven years.

A soon-to be-divorced reclusive millionaire lottery king is fighting to evict his in-laws from a $3m Gold Coast mansion.

David Railton Kennedy, 50, who made his fortune through The Lottery Office which allows Australians to take part in foreign megadraw lotteries, lives in an enormous palm-fringed beachfront compound on Hedges Ave in Mermaid Beach worth an estimated $30m.

New Zealand-born Mr Kennedy has filed a claim in the Supreme Court in a bid to evict his in-laws Joanne, 68, and Michael Podmore, 62, from a nearby $2m Burleigh Heads investment property he says he let them live in for rent-free since July 2016.

David and Sasha Kennedy. Picture: Facebook

According to court documents, the case was launched after Mr Kennedy’s lawyers wrote to the Podmore’s on July 5, to tell them that unless they paid $2.1m, Mr Kennedy would sell the four-bed four-bathroom Gabriel Grove home.

The Podmores lodged a caveat over the home on August 3, and Mr Kennedy has applied to the Supreme Court to remove the caveat and deliver up vacant possession to allow the mansion to be sold.

Gabrielle grove, Burleigh Heads Picture realestate.com.au

The Podmore’s claim the caveat over the title of the property protects their stake in the home arising from oral agreements and money they spent renovating and maintaining the home.

But Mr Kennedy alleges in his claim that the Podmore’s have no proprietary interest in the Burleigh home because they were never the owners, and any renovations they did were for lifestyle reasons and not to boost its value.

The Burleigh home, which boasts panoramic views of the coastline, is owned by Mr Kennedy’s company Railton Holdings Pty Ltd, as trustee for the Burleigh Property Trust.

The claim states that this structure ensures the investment property is not liable for land tax.

Mr Kennedy states in his claim that he separated from his wife of 12 years, Sasha Kennedy, 48, in October 2020 and they are getting divorced.

Joanne Podmore is Sasha’s mother, and Michael is Sasha’s stepfather, court documents state.

Mr Kennedy states in the claim that as his in-laws knew he “enjoyed a luxurious lifestyle” and had “generated wealth” through his success in business for the past 32 years and had invested in real estate, including seven properties in Queensland.

He lives in a compound created buy buying his neighbour’s $7.6m Hedges Ave mansion 14 years ago to expand his private oasis purchased six years earlier for $10m.

David Kennedy’s compound on Hedges Ave. Mermaid Beach. Picture Glenn Hampson

Property records show that Mr Kennedy’s company also owns a luxury five-bedroom rural getaway two hours drive south of Brisbane.

Railton Properties Pty Ltd paid $7.7m for 40ha at Possum Creek near Bangalow in northern NSW in 2008, property records show.

Mr Kennedy claims he let the Podmore’s live rent-free in a $5m beachfront sub-penthouse apartment he owns on Albatross Ave in Mermaid Beach for two years until December 2011.

But at this time he resolved to become circumspect in his dealings with Mr Podmore after an employee told him that Mr Podmore had been struck off the solicitor’s roll for professional misconduct, Mr Kennedy’s claim states.

Months earlier in June 2011 Mr Kennedy alleges he told Mr Podmore he would no longer lend him money to help prop-up his Burleigh Heads Sushi restaurant

“Mike the more money I lend you, the faster these phone calls come. I’ll give you this loan, but I am not loaning you any more money for the business,” Mr Kennedy alleges he said after he agreed to pay a $38,000 debt for Mr Podmore’s unpaid PAYG tax and superannuation contributions for his Sushi business.

Mr Podmore is alleged to have replied: “Don’t tell Joanne, Sasha or anyone else about these requests”.

Mr Kennedy’s home on Hedges Ave as viewed from the beach. Picture Glenn Hampson

In December 2010, Mr Kennedy alleges he paid a $76,620 bill to shop fitters for the Sushi on James restaurant on behalf of Mr Podmore, and $25,000 in September 2009 for rental bond and set-up costs.

Mr Kennedy alleges in his claim that he was never repaid when the sushi business was sold.

He also purchased a Mercedes Benz C200 as a gift for Mrs Podmore in 2012, the claim states.

The Podmore’s filed a conditional notice of intention to defend the claim in December and have applied to have the case stayed pending the outcome of other related court proceedings.

On February 4, a court registrar ordered that the case be adjourned to a date to be fixed by the registry.