Camelot to launch penny lottery

Sales across all lottery games have fallen 5.5%

Camelot's new daily lottery is just one of a range of measures to boost public interest in the game.

The Daily Play draw, which starts on 22 September and costs £1 to enter, is the first new game to be launched as part of the National Lottery operator's latest bid to reverse a drop in sales.

This latest announcement comes after the company announced in May it would be launching the world's first penny-to-play lottery to raise money for a London Olympics.

The Daily Play draw to take place every day except Sunday allows people to pick seven numbers from 27 or opt for a "Lucky Dip".

Those who fail to match any number at all to the winning combination will be entitled to a free "Lucky Dip" ticket.

Camelot says players can claim free tickets until they match one number or more.

"Good causes"

We are looking for reassurances from the government that it has thought this through Campbell Robb NCVO

This will be followed by next year's penny-to-play weekly draw which will have cash prizes between £20 and £200,000.

A twice-yearly 'Olympic Mega Draw' are also among the games designed to raise £750m towards staging the Olympics.

Camelot said it was ready to launch the first of the new games next year, although London will not find out if its bid has been successful until 2005.

But the "good causes" that currently benefit from lottery funding are concerned they may lose money.

Ring-fencing money raised from Olympic lottery games will also require a change in the law, although the government is committed to the scheme.

The National Council for Voluntary Organisations (NCVO) director of public policy Campbell Robb told BBC News existing good causes were concerned about "the displacement effect" the new lottery fund might have.

"If people stop playing the traditional lottery and only play the Olympic games that will mean less money coming through to the small voluntary and community groups that need it".

If you offer too much choice, consumers get confused Professor Ian Walker

Top prize

Penny Lottery tickets could go on sale every day.

Anyone with all eight numbers will win the top prize of £25,000, with up to a maximum of five winners every night.

Those with fewer numbers could win one of 40,000 other prizes on offer.

Players will be able to buy as many tickets as they want but will not be able to choose their numbers.

Meanwhile the Mega Draw will have a £5m jackpot and 25,000 prizes, including trips to former Olympic cities.

Another non-Olympic game due to be launched in the autumn will be a Lotto on the internet.

And a European game jackpot, held in conjunction with French and Spanish, lottery games, will have jackpots of up to £30m.

Sales fallen

By next year Camelot says people will also be able to play games over mobile phones.

Ms Thompson said sales across all games had fallen another 5.5%.

But she predicted the new games would turn things around by the 2004 to 2005 financial year.

Camelot predicts the main Lotto draw will only account for 49% of overall sales by 2005, with other games taking its place.

Currently the main draw makes up 74% of all sales.

Camelot has pledged a £1.5bn contribution towards staging the Olympics in London in 2012.

Another £750m would be drawn from other lottery funds.