The U.K. National Lottery Commission today revealed the terms of the National Lottery's third licensing period.
The Commission's draft Invitation to Apply (ITA) sets out the near-final details of bidding process as well as clear guidance on the competition process, its requirements and evaluation criteria. The Commission, which regulates the lottery and is also responsible for the selection of bidders for the next contract, is seeking a licensee to provide a complete solution, including: setting up and running the National Lottery; designing, building, financing and operating the requisite infrastructure and systems; designing, distributing and marketing lottery games; and ensuring a smooth transition of the lottery from the current operations. (The current license, held by Camelot, expires Jan. 31, 2009.) Each candidate must cover all of these elements in its bid.
New this time around is that the contract has been extended from seven years to 10 years, with the possibility of further extensions. The bidding process has been extended too; interested parties will now have five months from the final ITA to put together bids. The draft license sets out the detailed conditions relating to the operation of the lottery that bidders must take into account when responding to the ITA.
Bids from entities based all over the world are welcome, but bidders should note that the licensee must have an office physically located in the United Kingdom and staffed by appropriately authorized personnel. The Commission says it will be impartial toward the nationality of the bidder--or whether it is a profit-making or a not-for-profit operator--as long as the bidder can fulfill the statutory objectives and is capable of being regulated in an efficient and effective manner.
Striking is that suppliers and contractors are allowed to participate in more than one bid.
More details could be brought to light on May 10, when National Lottery Commission Chief Executive Mark Harris addresses an audience of senior executives from financial institutions and gaming operators from across Europe at the Gaming Investor conference.
There is, of course, speculation, that some same international names and combinations being considered for the National Turkish Lottery and possibly the Philippines National Lottery are also strong candidates to win the U.K. contract.
Lottomatica, Italy's national lottery operator, is said to be in the running, as is a partnership of Itralot, Ladbrokes and Tattersall's. Virgin's Sir Richard Branson, who bid for both of the previous U.K. National Lottery contracts, is expected to bid for a third time, although his inclusion is dependent on whether he is satisfied that the bidding process is fair.