The National Lottery Commission has confirmed that it has received two bids for the next licence to run the UK lottery.
The bidders are the incumbent, Camelot, and India's biggest lottery operator, Sugal & Damani.
The bids will now be scrutinised by the commission which will announce who will run the lottery for 10 years from 2009.
The preferred bidder will be announced by the end of June and the licence will be finalised by late August.
Camelot is also promising to launch the first world's first global lottery draw as part of its package of games, which will create up to 100 millionaires every month.
The World Lottery Draw is said to have attracted interest from 48 countries, and would also offer one annual mega-prize of an even bigger jackpot.
Camelot said it would increase its annual return to good causes if it wins its third lottery licence.
Camelot chief executive Dianne Thompson has called the Indian bidders serious competitors.
"I don't underestimate them at all. Well done to the National Lottery Commission. They wanted a competition and they have got one," she said.
Rival bidder Sugal & Damani said technology was at the heart of its application.
The firm creates its own lottery technology and does not have to partner an external technology firm.
"Sugal & Damani's operations in India are highly efficient, handling almost double the number of transactions with comparable size of retailer terminals that exist in (the) UK," it said in a statement.
Chairman Sugalchand Jain said UK retailers would be offered greater incentives to sell lottery tickets and new games and prizes would be offered to players.