Lottery watchdog backs GTech

Guy Snowden: His actions prompted the Oflot inquiry

American firm GTech is fit to continue as a supplier to the British National Lottery, the Lottery watchdog has ruled.

But the Acting Director General of Oflot, John Stoker, also said it was right that GTech had sold its shareholding in Camelot.

John Stoker: GTech can continue as a Camelot supplier

Mr Stoker said: "I have concluded on the evidence currently available to me that GTech is fit and proper for its role as a supplier of lottery systems and services to the National Lottery."

Controversy has surrounded GTech's association with the Camelot consortium and the lottery since its former chairman Guy Snowden lost a libel action against Richard Branson.

The Virgin tycoon said Mr Snowden had tried to bribe him to pull out of the contest to run the lottery.

GTech also faced allegations of impropriety and poor business practices in America in the 1990s.

GTech has sold its shareholding in Camelot but is still the supplier of computer equipment to the UK lottery.

Mr Stoker has been investigating GTech's involvement since he was appointed in February.

His predecessor was forced to resign in the wake of Mr Snowden's court case.

Mr Stoker said: "I share Camelot's view that its purchase of GTech's share was the right response to the public mood, and consider that it also simplifies the basis for my consideration of issues of fitness and propriety."

GTech flew its board of directors to London to meet Mr Stoker and admitted past "lapses of judgement".

They also told him new systems were in place to reduce the scope for impropriety.

GTech's new chairman, William O'Connor, said: "Mr. Stoker conducted an exhaustive review.

"His decision recognises the significant changes and improvements we have made to our business systems."

But Mr Stoker warned he would continue to watch GTech and that he would keep his decision under review in the light of future developments.