LONDON - Sir Richard Branson is poised to take control of Britain's National Lottery after rival Camelot was told its bid to continue running the 5-billion-pound-a-year game had been rejected.
In an announcement that stunned both companies, the National Lottery Commission yesterday announced it had rejected the bids because of continuing weaknesses in their proposals.
But the commission's chairwoman, Dame Helena Shovelton, then added that Sir Richard's not-for-profit company, The People's Lottery, would receive an extra four weeks to improve its bid.
Sir Richard, who had been trapped on his Caribbean island home of Necker by Hurricane Debby, said he was pleased with the decision.
"I am hopeful that we can finally deliver to the people of Britain the lottery they want."
The new lottery is due to start on October 1, 2001, with a seven-year licence.
Both companies had pledged to raise 15 billion pounds for good causes, 50 per cent more than under the present licence.
But the commission said in its rejection of the proposals that the estimates were too optimistic.
Dame Helena also revealed the commission had concerns about the honesty and reliability of Camelot's software supplier and partner, GTech.
The American-owned firm admitted in May it had covered up a software glitch, discovered in June 1998, which meant that 113,000 small prizewinners had received the wrong amount over the first three and a half years of the lottery's operations.
Dame Helena said the issue had "shaken the commission's confidence in the commitments from Camelot."
Camelot, which faces making its 800 staff redundant, hinted it may challenge the commission's decision in court.
Tim Holley, Camelot's chief executive, said: "I and the 800 staff at Camelot are bitterly disappointed and stunned by today's news."
- INDEPENDENT
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