Monday’s business model is so flawed that even if it secures fresh funding it will still fail, say industry experts.
Chariot, the company behind the internet-based lottery game, saw its share price collapse this week following sales that were well below target. It is currently trying to raise &£3m of emergency cash to stay afloat.
However one source points out that consumers who buy products over the internet are not from the same social demographic as people who buy in shops.
The source says: “You face an enormous challenge if you try and change the habits of people who buy on impulse rather than plan ahead. There’s only so long you can go on banging your head against a brick wall.”
The source adds that Chariot wildly overestimated the market for online ticket sales by predicting it would sell around 500 million tickets a year, when the Camelot-run National Lottery (which sells 6 billion tickets a year) sells only 200 million of them online.
Chariot spent &£15m on marketing the new lottery, with a campaign developed by London-based agency Us, and support from M&C Saatchi.