Camelot set to hold lottery 'monopoly'

Camelot is widely expected today to win its third battle to run Britain's National Lottery.

The company has run the national game since 1994 but faces a rival bid from Sugal & Damani, an Indian based rival. The last contest, in 2000, saw the company engaging in a bitter PR war with Sir Richard Branson's "People's Lottery".

This time both sides have chosen to steer clear of public mud slinging, preferring instead to let their bids do the talking.

Camelot has a powerful advantage as the incumbent operator, making it very difficult to dislodge, particularly at a time when the money is a needed to fund the 2012 London Olympics.

The company has been asked to guarantee £2.2bn for the Olympics, which could provide a major headache for the Indian company that will also have the associated set up costs and logistical problems of taking over from the incumbent.

Critics have said that Camelot effectively enjoys a monopoly which can not be healthy. The 10-year license that Camelot and Sugal & Damani are battling to win starts in 2009.

Sugal & Damani has considerable experience in running games, operating government-licensed lotteries in India for over 30 years.

However, the UK National Lottery dwarfs the company's existing lottery businesses, which includes online games 2 Digits and Rajshree Trump.