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U.K. National Lottery on the Rocks

"The operator's half-year figures yesterday showed a drop of 27.3 per cent in profits - largely due to a fall in sales. Pre-tax profits for the 26-week period up to 30 September were £22.9 million (US$33 million) down more than a quarter on the period last year.

"The results are a far cry from when lottery fever first gripped the nation seven years ago and sales for the Saturday draw averaged £70 million (US$110 million)a week.

"…Professor Ian Walker, of Warwick University, who has a special interest in the economics of the lottery, said Camelot was paying for the errors it had made in operating the lottery.

"He said, `This fall in sales is not linked to a natural dropping off of interest in the lottery, because the Wednesday lottery draw is still strong. Basically, Camelot have made errors in the design of their games, which has badly affected the all-important Saturday draw.'

"…Prof Walker said that unless there are radical changes in how the lottery is organised, Camelot will struggle further with profits under the terms of the new licence - because `it puts the emphasis of making money for the charities first and Camelot second, which is quite different to how the situation has been arranged so far.'

"The lottery has faced increased competition from other forms of gambling. The gaming industry is set for a major boost next year when the government replaces its 9 per cent betting tax with a 15 per cent levy on profits. Admissions to bingo clubs are running at a higher level than the record of 100 million, set in 1995…"

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