Virgin boss Sir Richard Branson has recruited Microsoft chairman Bill Gates to help win the next licence for the National Lottery.

Microsoft will provide the PC technology to sell lottery tickets, not only in shops but also over the internet and through interactive television and mobile phones.

The deal will put Sir Richard's non-profit People's Lottery on a good footing with barely 12 months before Camelot's licence to run the National Lottery expires.

Sir Richard, speaking on BBC One's Breakfast With Frost programme, said he estimated they could make an extra £2bn a year for good causes.

Seven-year contract

He also said they could win back half of the 12 million people who, he said, had stopped playing the National Lottery since it was launched in 1994.

Bids for the seven-year contract must be in by next month and the government has made it clear it would prefer the next licence-holder to be a non-profit making organisation.

The National Lottery Commission has confirmed seven firms have expressed an interest in running the lottery.

Sir Richard met Mr Gates in London on Tuesday and agreed to design the software for the People's Lottery.

He will also advise on security encryption and data warehousing.

Mr Gates told Breakfast With Frost: "The lottery terminals in the past have not used PC technology and there hasn't been a way of leveraging all the things which are going on with the internet.

'A millionaire a day'

"Because of the time frame, it is very right to say isn't there an approach which can cost a lot less money and can be a richer experience for the people who want to us it."

Sir Richard pledged to make "a millionaire a day every day of the year" but said it was unlikely he would increase the frequency of the twice-weekly lottery draws.

The Sunday Business newspaper said Virgin would pay Microsoft a fee but Sir Richard reportedly wants Mr Gates to consider donating some of it to charity.

It said Sir Richard has also recruited Kellogg's to help with distribution, retail and marketing, US gaming technology company AWI and accountants KPMG.