Camelot, the company that runs the National Lottery, will this week reveal that annual sales have risen for the first time in six years.
The announcement will be a relief for Dianne Thompson, Camelot's chief executive, who pledged last year to put an end to years of decline that have hurt the lottery's "good causes" - the charities and cultural projects that benefit from it - and led to mounting criticism of the company.
A year ago Camelot revealed that annual sales had fallen to £4.6bn (US$8.2 billion), down by 16 per cent from their high in 1997 when they stood at £5.5bn (US$9.7 billion). But in the past year sales of Lotto, the flagship National Lottery - which fell sharply despite an advertising campaign featuring the comedian Billy Connolly - are understood to have stabilised, while newer games have boosted revenues.
In the first three quarters of the company's financial year, sales rose steadily to a total of £3.4bn (US$6 billion). Sales were £1.105bn (US$1.96 billion) in the first quarter but rose to £1.16bn (US$2.05 billion) in the third. Fourth quarter sales to the end of March are thought to have led to a small rise in the annual sales figures.
Camelot has recently tried to develop new games that use mobile phones and digital television, as well as promoting scratchcard games. Two months ago it launched Euro Millions, a lottery across France, the UK and Spain which offers the largest maximum prize so far of £50m (US$89 million). EuroMillions is a joint venture with French and Spanish lottery companies, but Camelot hopes to extend the game to Ireland, Belgium, Austria, Portugal, Luxembourg and Switzerland.
The National Lottery has been dogged by controversy since its launch in 1994, when Camelot won the first seven-year contract to run it. In 1996, Labour, then still in opposition, threatened to cap Camelot's profits if it was elected.
Thompson - who was promoted from operations director to chief executive in 2000 when Camelot won its second licence to run the lottery, beating off competition from Sir Richard Branson - has also been in the firing line.
After Camelot won its second licence, Thompson received a £600,000 bonus (US$1.06 million), prompting accusations of corporate excess.
Since her appointment as chief executive, criticism has focused on poor sales, 28 per cent of which go to the good causes with the aim of raising £10.6bn (US$18.8 billion) over the current seven-year licence.
Amid mounting criticism, Tessa Jowell, the culture secretary, said in 2002 that the Government was considering nationalising the lottery after Camelot's current licence expires. She also said maximising the amount of money going to good causes, rather than to the company running the lottery, was the priority.
Camelot is currently paid 5 per cent of all lottery sales to operate the games and made an annual profit of £42.3m (US$75 million) for the year ending March 2003. It will reveal profits for the last financial year in its annual report to be published in the summer.
That's great..we will have a chance to play for bigger Jackpots
You know the UK Lottery wouldn't slump forever. Tax-free prizes and no annuity jackpots.
Why not..this is normal here in Europe...all major lotteries are lump sum and tax free.