Welcome Guest
Log In | Register )
You last visited December 7, 2016, 9:19 am
All times shown are
Eastern Time (GMT-5:00)

Camelot beats off rivals to win UK Lottery for next 12 years

UK National LotteryUK National Lottery: Camelot beats off rivals to win UK Lottery for next 12 years

The UK national lottery is to be run by incumbent operator Camelot for the next 12 years after the group persuaded regulators it was more likely to meet the funding demands of the London Olympics and other good causes than outsiders Sugal & Damani, an Indian conglomerate.

Camelot was selected as preferred bidder for the 10-year license, starting from 2009, even though the National Lottery Commission said some of the operator's projections — particularly its pledge of average yearly sales of £7.9bn — were described as "overly optimistic" by commissioners.

Sales last year rose from £4.9bn to £5bn, boosted in large part by controversial scratch-card games. They remain below levels of seven years ago.

It is not the first time lottery watchdogs have criticized Camelot's projections. During the bid process for the current license, the commission said Camelot's estimate of £15bn raised for good causes over seven years was also "overly optimistic". With less than two years to run, Camelot has so far raised £8.3bn and now targets £10.5bn.

At the heart of Camelot's bid is a bold proposal for a world lottery, a widening of the popular Euro Millions draw. Yesterday commissioners declined to be drawn on the likelihood of such a project materializing. Camelot said it would generate 100 millionaires every month. Industry insiders noted the regulators had been skeptical of Camelot's enthusiasm for a European lottery, which proved a huge success.

The bidding process has already been dismissed by some previous bidders as failing to offer a level competition. Sir Richard Branson and others have criticized the cost of bidding against Camelot, which has won both previous license bids. Camelot spent £20m on its bid. Sugal & Damani would only say it had spent "less than £20m".

Camelot takes 5p from every £1 spent on lottery tickets to cover its costs and profits. The group claims to be the most efficiently run lottery in Europe, returning just 0.5p to shareholders in profits. It has declined to reveal whether the 5p take will alter under its business plan for the third lottery license. Regulators found Camelot's plans to be marginally more cost-effective for good causes than those of Sugal & Damani.

Guardian

We'd love to see your comments here!  Register for a FREE membership — it takes just a few moments — and you'll be able to post comments here and on any of our forums. If you're already a member, you can Log In to post a comment.

4 comments. Last comment 9 years ago by Todd.
Page 1 of 1

United States
Member #16612
June 2, 2005
3493 Posts
Offline
Posted: August 14, 2007, 1:00 pm - IP Logged

Why did Camelot win contract in UK Lotto? When does the contract begin for Camelot? What other rivals did Camelot beat to win the contract?

    Avatar
    Kentucky
    United States
    Member #32652
    February 14, 2006
    7310 Posts
    Offline
    Posted: August 14, 2007, 2:30 pm - IP Logged

    Why did Camelot win contract in UK Lotto? When does the contract begin for Camelot? What other rivals did Camelot beat to win the contract?

    "Why did Camelot win contract in UK Lotto?"

    Because they persuaded regulators it was more likely to meet the funding demands of the London Olympics and other good causes.

    "When does the contract begin for Camelot?"

    It's a 10-year license, starting from 2009.

    "What other rivals did Camelot beat to win the contract?"Sugal & Damani, Jack Whittaker Lottery enterprizes LTD, and a group of Nigerian goat herders. 

      Avatar
      Coastal Georgia
      United States
      Member #2653
      October 30, 2003
      1866 Posts
      Offline
      Posted: August 14, 2007, 3:40 pm - IP Logged

      "Why did Camelot win contract in UK Lotto?"

      Because they persuaded regulators it was more likely to meet the funding demands of the London Olympics and other good causes.

      "When does the contract begin for Camelot?"

      It's a 10-year license, starting from 2009.

      "What other rivals did Camelot beat to win the contract?"Sugal & Damani, Jack Whittaker Lottery enterprizes LTD, and a group of Nigerian goat herders. 

      ROFL

       

                                     

                    

       

       

        Todd's avatar - Cylon 2.gif
        Chief Bottle Washer
        New Jersey
        United States
        Member #1
        May 31, 2000
        23262 Posts
        Offline
        Posted: August 14, 2007, 4:26 pm - IP Logged

        Congratulations to Jack Whittaker.  I'm glad he took the cash option.  I hope he doesn't have financial problems later in life.

         

        Check the State Lottery Report Card
        What grade did your lottery earn?

         

        Sign the Petition for True Lottery Drawings
        Help eliminate computerized drawings!