England's National Lottery Commission has published responses to its discussion papers regarding the next U.K. National Lottery license and in doing so has opened up the bidding process.
The term for the next license will begin in 2009, and there is much speculation as to who will be bidding for the seven-year contract. Camelot, the current operator, has held the license since the lottery launched in 1994. Through a bidding process that pitted the group against Sir Richard Branson's People's Lottery in 2000, Camelot won the rights to remain the lottery's sole operator until 2009.
But with England's new liberated gambling laws, the growth potential through interactive channels and the commission's expressed desire to level the playing field for prospective bidders, the field of candidates is expected to be much more crowded the next time around. Already a handful of groups are said to be in the hunt for the contract, which will be awarded in 2007.
Here's a brief overview of prospective bidders:
Camelot - Camelot has run the lottery for 11 years, and Liverpool Daily Post & Echo reports that the group will be in the running again in '07. "We think we have a good chance of winning, but I'm not being complacent," Chief Executive Dianne Thompson told the publication. "We will be up against stiff competition. We are not approaching this on the basis that we deserve it. " Camelot brings in £4.75 billion a year, of which: 25 percent goes to good causes; 50 percent to the prize pool; 2 percent to the chancellor; 5.2 percent to retailers; and 4.8 percent to Camelot.
Sir Richard Branson - Branson left the 2000 bidding war with a bad taste in his mouth and vowed never to bid again for the contract, but Mail on Sunday recently reported that he might be ready to have another go. A spokesman for Branson told the newspaper that the Rebel Billionaire is considering "a number of ideas" and that, like the People's Lottery group that bid in 2000, any Branson-backed lottery would donate all profits to charity.
Lehman Brothers - Financial Times reports that Lehman Broths is considering creating a bid consortium. The plan could include a partnership with a gaming business that would play a key role and possibly take an equity stake.
Gala - England's largest bingo operated has reportedly contacted the commission with an interest in entering the bidding process. What Gala does could depend on the outcome of its £2 offer to acquire Coral Eurobet.
Goldman Sachs/GTECH - Goldman Sachs is said to be organizing a bid through a partnership with GTECH as the technology provider. GTECH played an interesting roll in the 2000 bidding process as technology partner to Camelot, which was temporarily eliminated from the running when a costly flaw in GTECH's system was exposed. It was the commission's reinstatement of Camelot as a candidate that set off rival bidder Richard Branson, who accused the commission of favoritism. Adding to the GTECH intrigue is that the company is reportedly a target of acquisition. Meanwhile, ANP reports that Gruppo De Agostini, the controlling share of Italian lottery giant Lottomatica and the group rumored to be eyeing GTECH for acquisition, could take a "leading role" in the Goldman Sachs/GTECH bid.
Hilton Group/Intralot - Financial Times reported this week that the two companies are considering a bidding partnership. That brought up the prospect of Ladbrokes, Hilton's betting unit, seeking permission to install lottery terminals in its betting shops, although a spokesman for Ladbrokes told the publication it was too early to speculate on such a plan.
William Hill - The leading British bookmaker is also considered a candidate to bid for the license, but little is known of the group's intentions. Like Ladbrokes, William Hill would have distribution advantages if placing lottery terminals in betting shops were allowed.
Tattersalls - Australia-based Tattersalls is also considered a potential bidder. The group made a bid for the first U.K. lottery license.
Sportech - Sportech recently told the Daily Post that it, too, will considering its options "as the process advances and its stages become more clear."
Formal bids are expected to start around this time next year.