Camelot faces 2-year handover threat

Camelot could be forced to spend the last two years of the next lottery licence handing over the National Lottery network to a rival, under new rules introduced by the game’s regulator.

A radical shake-up of the rules for hiring a new operator at the end of the next licence has been unveiled by the National Lottery Commission. The changes form part of Camelot’s new licence, which begins in February 2001, and which the operator signed two weeks ago.

The new rules aim to create a level playing field for rival bidders. Many observers believe new operators will be put off bidding for the licence due to Camelot’s stranglehold on the Lottery.

Under the regulations, the commission may insist on a two year handover period, to avoid the problems of a “big bang” switchover. This would mean the competition for bidders could open in as little as four years’ time.

There is some doubt about whether the scheme could be a success. Working closely together for such a long period of time could lead to friction between Camelot – which would have little incentive to co-operate knowing it had lost the licence – and the succeeding operator.

A spokesman for the National Lottery Commission says: “We have always said that the present licence has weaknesses. The most serious is, it does not look ahead and make provisions for the handover.

“Peter Davis [the former regulator who drafted the current licence] failed to anticipate the licence might end and make the necessary regulatory provisions.”