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Camelot Awarded Licence

Camelot Awarded Licence

Camelot Group, a consortium backed by Cadbury Schweppes and banknote printer De La Rue, has been selected to run the National Lottery. Camelot was said to have best met the duties set out in last year’s National Lottery Act.

The successful Camelot Group will be represented by Saatchi & Saatchi.

CAMELOT WINS LOTTERY FRANCHISE

Following this morning’s announcement that the winner of the National Lottery franchise is the Camelot Group, Richard Branson has made clear his anger and disappointment over the decision.

The Virgin chief, whose losing consortium the UK Lottery Foundation was the only consortium intending to donate all profits to charity, said, “It is the biggest disappointment I’ve had in my life.” He may consider legal action over today’s failure. He added that it was a pity that only a few shareholders would benefit from the proceeds.

The lottery should launch in November 1994 with an on-line lotto. Instant games will be launched in Spring 1995. Tickets will initially be £1 each. Winners will be announced weekly, via a televised draw. The jackpot is expected to be £4 to £5 million per week, shared between typically 2 winners. Camelot plans to have 10,000 outlets selling tickets at the launch of the Lottery; these will be mostly newsagents, tobacconists, groceries or convenience stores.

According to Camelot’s initial forecast, the total turnover of the Lottery for the period of the licence (up to 30 September 2001) is likely to be £32 billion, with the contribution to the National Lottery Distribution Fund – the good causes which the lottery is being established to support – being around £9 billion. The contribution to the NLDF in the first full year of lottery operation to 31 March 1996, on the basis of Camelot’s forecast, is expected to be some £750 million.

Camelot Group plc is owned by a consortium of Cadbury Schweppes, (22.5%), De La Rue (22.5%), Racal (22.5%), GTech (22.5%) and ICL (10%).

Office of the National Lottery 071 211 2132.

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