Camelot Group plc currently operates the UK lottery. A bid is opened in every eight years to call different companies to operate the national lottery. This process is managed and controlled by the National Lottery Commission, an organizations which has no connections with the government of Britain. This company also looks after the just reasonable of players.
Camelot first began in 1993 and was supported by shareholders like Cadbury Schweppes, Thales Electronics plc, Fujitsu Services Ltd., Royal Mail Enterprises Ltd., and De La Rue Holdings plc. GTECH was also a shareholder, but it was bought out following complications that affected the bidding. Executives like Tim Holley were put in charge of Camelot being promised large bonuses. When the Labor government took note of the massive amounts of money being made by executives in Camelot, it became a bit of an embarrassment to the company.
Camelot decided to run in the bidding for the national lottery in 2001. There competitor, The People’s Lottery, was fairly convinced that they would win the bid after the indecent with GTECH. It was found that lottery terminals made by GTECH had a technical problem that made them give out the wrong amounts of winnings. GTECH sold their shares and Camelot continued the race to win the bid.
In a turn of events the National Lottery Commission chair, Dame Helena, told the companies that they both did not meet the requirements to run the lottery. Even so, the National Lottery Commission still tried to give the company to The People’s Lottery. Seeing the injustice of this, Camelot took the National Lottery Commission to court. The High Court awarded the case to Camelot saying that the Commission’s decision was conspicuously unfair. The National Lottery Commission fired their Treasury team that had made the decision.
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 raised by lottery in UK is segregated into various sections. The majority of the fund, for every pound that is spent goes to the ‘prize money’ (50p) or the several good-causes (28p). Whereas 12p of the amounts goes to the government of Britain and 5p of it goes people who sell the lottery tickets, etc. Camelot’s profit is 5p per pound, and it utilizes 4.5p of it, to get their costs, and 0.5p is their profit.
Camelot has been operating the UK lottery well and it has been going successful. When the lottery sales went down, they started offering lower costs. At this time, several lottery games were modified to Lotto, and since them more people started taking part. It recently ran a promotion, in which one of the lottery games does fund raising for the Olympics and the Paralympics of 2012.