The UK lottery is currently operated by the Camelot Group plc. Every eight years a bid is opened to see what company will run the national lottery. This process is overseen by the National Lottery Commission, an organization not related to the British government, which also oversees fair treatment of players.
Camelot was initially established in1993. It was maintained by shareholders such as Thales Electronics plc, Royal Mail Enterprises Ltd., Fujitsu Services Ltd., Cadbury Schweppes, and De La Rue Holdings plc. One of the shareholders was GTECH; however it was bought out subsequent obstacles that influenced the bid. Tim Holley, and other executives in Camelot were accused being promised huge bonuses. At the time when the labor government took notice of the enormous quantity of money being made by Camelot executives, it became a humiliation to the corporation.
Camelot again decided to bid for the national lottery in 2001. The People’s Lottery, one of their rivals was sure that they would be the winner after the problem with GTECH. It was later discovered that the lottery terminals, made by the GTECH had a technical fault, which made them allot the incorrect quantity of winnings. GTECH sold off their shares, and Camelot then kept up its biddings.
After some time, Dame Helena, the chairperson of the National Lottery Commission, said that both the companies did not fulfill the criteria to operate the lottery. Even after this, the National Lottery Commission attempted to unfairly give the UK lottery company to the People’s Lottery. Camelot complained against such injustice and took the Commission to court. The High Court found the commission as unfair and awarded the case in favor of Camelot. The National Lottery Commission sacked their Treasury team, which that made this deal.
Later on the bidding reopened and Camelot won 4-1. The shareholders remain the same today except for the bought-out GTECH. It is now running the largest lottery franchise in the UK and raising money for various causes. Their biggest lottery game is known as the Lotto, and almost all of their games are done through scratch cards and pick the number games.
The fund that is collected by the UK lottery is further broken up into numerous categories. For every pound – (50p) goes for the prize money, (28p) goes for the several nice causes, (2p) goes for British government fund, and 5p is for the lottery ticket sellers and other such people. Camelot gets 5p per pound, in which, it uses 4.5 to cover their own costs and saving; only 0.5 is kept aside for their own profit.
Camelot has successfully operated the UK lottery franchise, and it has thrived under it. When sales started declining, they came up with a new campaign with lowered costs. This is the time when several lottery games were changed to the Lotto. After that, the sales again picked momentum. They recently run a campaign, where one of the lottery games was intended to raise funds for the 2012, Olympics and the Paralympics.