Lottery may be nationalised

Camelot is introducing new games to increase sales

The UK's National Lottery could be nationalised under options being considered by Culture Secretary Tessa Jowell.

Other possible changes include games being divided between a number of different companies.

Jowell: Wants to avoid another fiasco

Ms Jowell launched a review of lottery operations after the fiasco over the awarding of the current seven year licence to Camelot and in the wake of falling ticket sales.

That came despite Labour hoping to have improved the running of the lottery by replacing the single regulator with a five-person board, the National Lottery Commission.

When the last licence process was underway the commission originally favoured Sir Richard Branson's People's Lottery, before losing a High Court battle and re-appointing Camelot.

Ticket sales slide

Ms Jowell's decision to draw up a consultation document goes further than merely seeking to avoid a repeat of such a botched licensing round.

It says the National Lottery Commission could take over responsibility for running the games, as happens in other countries.

Dianne Thompson: Camelot chief

Either way, it comes against a background of sliding ticket sales, despite the relaunch of the main game under the name Lotto.

Lotto operator Camelot has blamed a recent slump in sales on the Queen Mother's funeral, the Golden Jubilee and the World Cup.

Chief executive Dianne Thompson said a series of events during weekends had been keeping players away.

Ticket sales were down on the day of England's second round 3-0 defeat of Denmark two weeks ago, and over the two Bank Holiday days of the Golden Jubilee at the beginning of June, Ms Thompson told a committee of MPs.

'Doing a 'Ratner'

The downturn began "sadly" with the Queen Mother's funeral in April, she said.

The main National Lottery game was given its new name, Lotto, two months ago, after a £26m relaunch.

Camelot is spending £72m on marketing over the year.

Giving evidence earlier this month to the Commons culture, media and sport select committee, Ms Thompson clarified remarks made last month, in which she said players would be "lucky" to win money on the main game. They had been taken out of context, she said.

Frank Doran, Labour MP for Aberdeen Central, told Ms Thompson she had been "effectively accused of doing a Ratner" to the National Lottery.

Ms Thompson said the odds of winning the jackpot were 14 million to one.

She added there was a one in 54 chance of winning any prize, one in 57 of winning £10 and one in 19 for winning a prize on the Thunderball draw.

'Live a Lotto'

She said she had made the remarks during a marketing lecture on why Camelot had replaced its slogan "It Could Be You" because "what is happening over time is players fed back to us 'well, yes, it probably won't be me'."

It was necessary to change the slogan to "Maybe, Just Maybe" and later to "Don't Live a Little, Live a Lotto", Ms Thompson told the committee.

Players were saying they had never won a prize because they did not regard £10 as a win, Ms Thompson said.