Lottery operator's profits slump 27%

Falling National Lottery sales were blamed yesterday for a 27 per cent slump in profits for its operator, Camelot. The company reported half-year profits for the period to 30 September of £22.9m, down more than a quarter on the same period last year.

Overall sales fell by 5 per cent to £2.4bn, with ticket sales for the game draws slipping by 6 per cent to £2.11bn, though scratchcard sales rose by 6 per cent to £290m.

Critics suggested the company, under attack over the level of directors' pay, had failed to maintain public interest since the game's launch in 1994. However, Camelot chiefs expressed optimism for future sales and drew attention to the £668m the company had raised for good causes in the half-year.

The operator has invested in an in-house sales force to help retailers maximise ticket sales, new software and the launch of a Christmas millionaire game.

Sir George Russell, chairman of the Camelot Group, said investment had already begun for a second licence period, which would help reverse the decline in sales.

Professor Ian Walker, an economist who has researched the lottery for the past three years, argued that it was a mistake to introduce the Wednesday game in 1997 with the same format. Fewer players made jackpots too difficult to win, he said. He recommended a change in marketing and a greater distinction between the two games.