National Lottery regulator Oflot has found Camelot guilty of breaching its licence after Marketing Week revealed the operator had set up a company to develop lotteries internationally without telling Oflot.
The regulator has censured Camelot for setting up Camelot International Services last August without its knowledge.
It will note the breach in its annual report – providing ammunition for rival operators to challenge Camelot for the National Lottery licence.
Oflot launched an investigation into Camelot’s overseas plans after they were revealed by Marketing Week (November 11 1996).
The regulator completed its probe this week. While it has reprimanded Camelot, it has also given the operator the go-ahead for the plans, as long as a proportion of any proceeds are given to UK Good Causes.
An Oflot spokesman says: “Oflot has given consent for Camelot to pursue the possibility of involvement overseas. But we will have to see its proposals. This is subject to negotiation.”