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Camelot Frontrunner for Lottery Contract

UNITED KINGDOM – As reported by the U.K. Observer: "It was once one of the most reviled companies in Britain. Disliked in Whitehall and mistrusted by the public, Camelot, the national lottery operator, struggled for friends.

"…Camelot - a consortium consisting of De La Rue, confectionery giant Cadbury, French defence contractor Thales and the Post Office - has found it very hard to shake off the charge that it makes profits of up to £90 million each year out of a game whose mission was to maximise returns to good causes.

"It all seemed to spell the end for the consortium. Surely there was no chance that it would win a third licence to run the lottery from 2009? The process of licence renewal is now beginning in earnest. A lottery bill will come before parliament later this year. The National Lottery Commission, with help from NM Rothschild, is finessing the competition process.

"…As bookmakers, investment banks and lottery operators from all over the world start organising themselves into consortia to run what is one of the world's most successful games, Camelot has, without question emerged as the early frontrunner.

"Camelot confirmed this last week by announcing a second consecutive ticket increase in the 12 months to the end of March. Sales rose 3 per cent to £4.77 billion. But it really hit the jackpot with internet, mobile phone and interactive increases of 600 per cent to £87.5m. And it also said it would bid again, with Dianne Thompson, its chief executive, leading its effort.

"…Heading the list once more will be Sir Richard Branson. After his last effort ended up in the High Court, Branson vowed he would never bid for the lottery again. But his growing gambling interests - he runs an online casino and is planning to compete for one or two of the 17 new-style casino licences - plus his mobile phone business mean the lottery makes more sense for Virgin than ever before.

"…There are whispers that the UK's major betting businesses may bury their differences and form themselves into an industry-wide bookie consortium to take on Camelot.

"…The most serious overseas challenge comes from Australia. Tattersalls has recently formed a partnership with Swedish technology firm EssNet 'to explore exciting international business opportunities'…"

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