Camelot Group
Encyclopedia
Camelot GroupCamelot is a private limited company, its entire share issue is owned by a single shareholder, as detailed above. are the operators of the UK National Lottery
. Camelot Group was awarded the National Lottery franchise in 1993 (though the lottery didn't start until 1994) and was re-awarded the franchise in 2001 and again in 2007. The current franchise period started in 2009 and runs until 2019, with a possible extension of up to 5 years. The Government body The National Lottery Commission is responsible for deciding who is awarded the franchise. The way the franchise was awarded to Camelot in 2001 caused some controversy due to the state owned Royal Mail
which had a 20% stake in the Camelot Group.
In March 2010 Ontario Teachers' Pension Plan
announced that it was buying Camelot for £389m.
with responsibility for the communications network; and Cadbury Schweppes
bringing experience in consumer marketing and knowledge of the world of corner-shop retailers. De La Rue
brought knowledge of secure printing technology, and GTECH Corporation
were brought in as the selected supplier of applications software. Staff were seconded from the partner companies, transferring to Camelot Group when the bid was successfully won.
Senior executives such as Tim Holley were enticed to join the project by the promise of large bonuses if the bid was successful. This caused embarrassment later when the incoming Labour government, in particular Chris Smith
, the Culture Secretary, publicly criticised Camelot and its executives for excessive greed in the level of salaries and bonus payments.
called The People's Lottery.
During the 2000 franchise bidding process, a technical problem with lottery terminals supplied by American company GTECH Corporation
came to light. It was discovered that this technical problem may have inadvertently caused winners to be paid incorrect amounts and it was this problem and the relationship between Camelot and GTECH that saw the National Lottery Commission recommend the lottery franchise be awarded to The People's Lottery. GTECH originally were a shareholder in Camelot Group but they later sold their shareholding to Camelot Group with the remaining shareholders increasing their stakes from 16.66% to 20%.
In August 2000 the chair of the National Lottery Commission, Dame Helena Shovelton
stunned both parties when she announced that neither party would be invited to run the National Lottery, claiming that neither party met the statutory requirements to run the lottery. It was felt legal problems were responsible for the downfall of The People's Lottery bid whilst the relationship between G-Tech and Camelot was the reason Camelot would not be invited to run the lottery. Despite the fact that neither bid met the statutory requirements, the Commission still tried to award the franchise to The People's Lottery.
By September 2000 it was clear that despite neither party meeting the statutory requirements to run the lottery, the Commission was going to award the franchise to The People's Lottery. It was at this point that Camelot initiated legal action, taking the Commission to the high court for a judicial review. The High Court judges sided with Camelot, describing the Commissions decision as "conspicuously unfair". The National Lottery Commission responded by dismissing the Treasury
legal team who had been advising them. Dame Helena resigned shortly afterwards and was replaced by Lord Burns.
During November, the National Lottery Commission reopened the bidding process and both parties resubmitted their bids, the commission hoped to announce the winner by mid-December. On December 19, 2000 the commission announced that Camelot would be awarded the franchise, with voting 4-1 in favour of Camelot. One member would later resign from the commission over the whole process, deeply unhappy that Camelot had been reawarded the franchise. It was during the second bidding process that Camelot agreed to buy out shareholder G-Tech's stake in the company. Sir Richard Branson threatened to take further legal action but faced with the prospect of a lengthy and costly legal battle, one which could have eventually resulted in The National Lottery games being suspended, he backed down.
Camelot have cut costs by 25% seeing numerous redundancies throughout the company.
National Lottery (United Kingdom)
The National Lottery is the state-franchised national lottery in the United Kingdom and the Isle of Man.It is operated by Camelot Group, to whom the licence was granted in 1994, 2001 and again in 2007. The lottery is regulated by the National Lottery Commission, and was established by the then...
. Camelot Group was awarded the National Lottery franchise in 1993 (though the lottery didn't start until 1994) and was re-awarded the franchise in 2001 and again in 2007. The current franchise period started in 2009 and runs until 2019, with a possible extension of up to 5 years. The Government body The National Lottery Commission is responsible for deciding who is awarded the franchise. The way the franchise was awarded to Camelot in 2001 caused some controversy due to the state owned Royal Mail
Royal Mail
Royal Mail is the government-owned postal service in the United Kingdom. Royal Mail Holdings plc owns Royal Mail Group Limited, which in turn operates the brands Royal Mail and Parcelforce Worldwide...
which had a 20% stake in the Camelot Group.
In March 2010 Ontario Teachers' Pension Plan
Ontario Teachers' Pension Plan
The Ontario Teachers' Pension Plan , commonly referred to as Teachers, is the organization responsible for administering pensions for public school teachers of the Canadian province of Ontario. The OTPP also invests the plan's pension fund, making it one of the largest and most powerful investment...
announced that it was buying Camelot for £389m.
Formation
Camelot was initially formed as a consortium to bid for the National Lottery project. The major partners were ICL, supplying hardware, software, and systems integration expertise; RacalRacal
Racal Electronics plc was once the third-largest British electronics firm. Listed on the London Stock Exchange and once a constituent of the FTSE 100 Index, Racal was a diversified company, offering products including: as voice and data recorders; point of sale terminals; laboratory instruments;...
with responsibility for the communications network; and Cadbury Schweppes
Cadbury Schweppes
Cadbury is a confectionery company owned by Kraft Foods and is the industry's second-largest globally after Mars, Incorporated. Headquartered in Uxbridge, London, United Kingdom, the company operates in more than 50 countries worldwide....
bringing experience in consumer marketing and knowledge of the world of corner-shop retailers. De La Rue
De La Rue
De La Rue plc is a British security printing, papermaking and cash handling systems company headquartered in Basingstoke, Hampshire. It also has a factory on the Team Valley Trading Estate, Gateshead, and other facilities at Loughton, Essex and Bathford, Somerset...
brought knowledge of secure printing technology, and GTECH Corporation
GTECH Corporation
GTECH Corporation, a company based in Providence, Rhode Island, United States, became a wholly owned subsidiary of Lottomatica, S.p.A., on August 29, 2006.-Holdings:...
were brought in as the selected supplier of applications software. Staff were seconded from the partner companies, transferring to Camelot Group when the bid was successfully won.
Senior executives such as Tim Holley were enticed to join the project by the promise of large bonuses if the bid was successful. This caused embarrassment later when the incoming Labour government, in particular Chris Smith
Chris Smith, Baron Smith of Finsbury
Christopher "Chris" Robert Smith, Baron Smith of Finsbury PC is a British Labour Party politician, and a former Member of Parliament and Cabinet Minister...
, the Culture Secretary, publicly criticised Camelot and its executives for excessive greed in the level of salaries and bonus payments.
2000/2001 Franchise controversy
There were 2 companies competing for the National Lottery franchise in 2001, Camelot, the incumbent operator and a rival operator organised by Sir Richard BransonRichard Branson
Sir Richard Charles Nicholas Branson is an English business magnate, best known for his Virgin Group of more than 400 companies....
called The People's Lottery.
During the 2000 franchise bidding process, a technical problem with lottery terminals supplied by American company GTECH Corporation
GTECH Corporation
GTECH Corporation, a company based in Providence, Rhode Island, United States, became a wholly owned subsidiary of Lottomatica, S.p.A., on August 29, 2006.-Holdings:...
came to light. It was discovered that this technical problem may have inadvertently caused winners to be paid incorrect amounts and it was this problem and the relationship between Camelot and GTECH that saw the National Lottery Commission recommend the lottery franchise be awarded to The People's Lottery. GTECH originally were a shareholder in Camelot Group but they later sold their shareholding to Camelot Group with the remaining shareholders increasing their stakes from 16.66% to 20%.
In August 2000 the chair of the National Lottery Commission, Dame Helena Shovelton
Helena Shovelton
Dame Helena Richards Shovelton, DBE, FRSA, Hon. FRCP is former Chair of the UK Citizens Advice Bureau and former Chair of the UK National Lottery Commission...
stunned both parties when she announced that neither party would be invited to run the National Lottery, claiming that neither party met the statutory requirements to run the lottery. It was felt legal problems were responsible for the downfall of The People's Lottery bid whilst the relationship between G-Tech and Camelot was the reason Camelot would not be invited to run the lottery. Despite the fact that neither bid met the statutory requirements, the Commission still tried to award the franchise to The People's Lottery.
By September 2000 it was clear that despite neither party meeting the statutory requirements to run the lottery, the Commission was going to award the franchise to The People's Lottery. It was at this point that Camelot initiated legal action, taking the Commission to the high court for a judicial review. The High Court judges sided with Camelot, describing the Commissions decision as "conspicuously unfair". The National Lottery Commission responded by dismissing the Treasury
Treasury
A treasury is either*A government department related to finance and taxation.*A place where currency or precious items is/are kept....
legal team who had been advising them. Dame Helena resigned shortly afterwards and was replaced by Lord Burns.
During November, the National Lottery Commission reopened the bidding process and both parties resubmitted their bids, the commission hoped to announce the winner by mid-December. On December 19, 2000 the commission announced that Camelot would be awarded the franchise, with voting 4-1 in favour of Camelot. One member would later resign from the commission over the whole process, deeply unhappy that Camelot had been reawarded the franchise. It was during the second bidding process that Camelot agreed to buy out shareholder G-Tech's stake in the company. Sir Richard Branson threatened to take further legal action but faced with the prospect of a lengthy and costly legal battle, one which could have eventually resulted in The National Lottery games being suspended, he backed down.
2009 license
January 31, 2009 saw the start of Camelot's third license period, increasing the money given to good causes, and increasing retailers' commission from 5% to 6%. The third license is for a ten year period with the option to extend by a further five years.Camelot have cut costs by 25% seeing numerous redundancies throughout the company.
Income
For every pound spent on the National Lottery, it is split in the following:- 50p → Prize Fund
- 28p → Good Causes
- 12p → Government
- 5p → Retailers as Commission
- 5p → Camelot
- 4.5p → Camelot for Operating Costs
- 0.5p → Camelot for Profit