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The National Lottery watchdog yesterday called for increased powers so he can fine the organiser Camelot if it breaches its licence. In the annual report of the lottery regulatory body, Peter Davis, the director general, says he can seek a court order requiring compliance with licence terms and in the last report can suspend or revoke a licence, but "there is a gap in the intermediate range of regulatory weapons to be deployed when necessary". He says he has asked the Department of National Heritage to consider legislation giving the director general the power to impose financial penalties for licence breaches.

Mr Davis said on BBC Radio 4 yesterday that Camelot should be doing more to tackle retailers who sell lottery tickets illegally to under-16s, and he wanted "a real disincentive to make sure [Camelot] takes these things seriously".