Camelot gallops back into UK lottery race
(Adds Branson comment in pars 11-13, background in last par)
By Rex Merrifield
LONDON, Sept 21 (Reuters) - A British court on Thursday
ordered national lottery operator Camelot back into the race to
run the game, saying regulators had unfairly rejected its bid in
favour of its rival, entrepreneur Richard Branson.
The court said the National Lottery Commission discriminated
against Camelot Group Plc [LOTT.UL] in virtually ruling out its
chances of running the game beyond next year.
Branson's The People's Lottery had been chosen as the
frontrunner for the lottery, the largest in the world.
"I have decided the case in favour of Camelot," said High
Court judge Stephen Richards after a judicial review.
"In essence, what I have decided is that the National
Lottery Commission, while intending to be fair, in its decision
to negotiate exclusively with The People's Lottery, adopted a
procedure which resulted in conspicuous unfairness to Camelot --
such unfairness that it rendered the decision unlawful."
The commission had been looking since February to award the
next licence to run the hugely popular game, which funds
charities. Both bidders have pledged to raise more than 15
billion pounds ($21 billion) over the life of the licence.
But the commission has struggled to take a decision, twice
failing to meet its own deadlines to pick a winner.
The commission said it would not appeal against the judge's
decision and wanted a speedy conclusion in deciding who gets the
new seven-year licence from October next year.
"With that in mind, the commission will be speaking to both
Camelot and The People's Lottery in order to see how it can give
effect to the court's order as quickly and fairly as possible,"
commission chief executive Mark Harris said in a statement.
CAMELOT BACK IN THE RACE
Outside the court, Dianne Thompson, chief executive of
Camelot, told reporters: "We are back in the race, which is what
we always wanted. We are absolutely delighted."
The judge stressed in his 40-page judgment that his ruling
did not decide who would ultimately win the battle for the
seven-year licence, but it provided for a month of further talks
between the bidders and the commission.
Branson, who lost out to Camelot in the race for the lottery
in 1994, said he had met the concerns of the commission --
voiced last month -- and believed his bid would win.
"I don't believe it will affect the outcome in four weeks'
time," he told Sky television.
Maximising the money for charities would decide the issue,
(REUTERS) UPDATE 2-Camelot gallops back into UK lottery race
UPDATE 2-Camelot gallops back into UK lottery race
(Adds Branson comment in pars 11-13, background in last par)
By Rex Merrifield
LONDON, Sept 21 (Reuters) - A British court on Thursday
ordered national lottery operator Camelot back into the race to
run the game, saying regulators had unfairly rejected its bid in
favour of its rival, entrepreneur Richard Branson.
The court said the National Lottery Commission discriminated
against Camelot Group Plc [LOTT.UL] in virtually ruling out its
chances of running the game beyond next year.
Branson's The People's Lottery had been chosen as the
frontrunner for the lottery, the largest in the world.
"I have decided the case in favour of Camelot," said High
Court judge Stephen Richards after a judicial review.
"In essence, what I have decided is that the National
Lottery Commission, while intending to be fair, in its decision
to negotiate exclusively with The People's Lottery, adopted a
procedure which resulted in conspicuous unfairness to Camelot --
such unfairness that it rendered the decision unlawful."
The commission had been looking since February to award the
next licence to run the hugely popular game, which funds
charities. Both bidders have pledged to raise more than 15
billion pounds ($21 billion) over the life of the licence.
But the commission has struggled to take a decision, twice
failing to meet its own deadlines to pick a winner.
The commission said it would not appeal against the judge's
decision and wanted a speedy conclusion in deciding who gets the
new seven-year licence from October next year.
"With that in mind, the commission will be speaking to both
Camelot and The People's Lottery in order to see how it can give
effect to the court's order as quickly and fairly as possible,"
commission chief executive Mark Harris said in a statement.
CAMELOT BACK IN THE RACE
Outside the court, Dianne Thompson, chief executive of
Camelot, told reporters: "We are back in the race, which is what
we always wanted. We are absolutely delighted."
The judge stressed in his 40-page judgment that his ruling
did not decide who would ultimately win the battle for the
seven-year licence, but it provided for a month of further talks
between the bidders and the commission.
Branson, who lost out to Camelot in the race for the lottery
in 1994, said he had met the concerns of the commission --
voiced last month -- and believed his bid would win.
"I don't believe it will affect the outcome in four weeks'
time," he told Sky television.
Maximising the money for charities would decide the issue,
Branson said, adding that all profits from his bid would go to
good causes, while the Camelot consortium aims to retain some
for itself.
The commission in August rejected Camelot's bid, pointing to
problems with its software supplier, U.S.-based GTech Corp
<GTK.N>, which had secretly fixed a long-running fault that
shortchanged some lottery winners by small amounts.
But the commission gave Branson a month to sort out the
defects in his bid, telling him exactly what he needed to do,
including finding 50 million pounds to guarantee pay-outs to
prize winners, which Branson says he has now done.
Camelot argued the decision to exclude it from further talks
on a second licence was "manifestly unfair."
The judge agreed, saying: "In my judgment there is no
escaping the conclusion that the procedure decided on by the
commission was conspicuously unfair to Camelot."
Camelot assured the judge that if Branson ultimately won,
the incumbent would strive to ensure a smooth handover to The
People's Lottery -- providing an interim service if necessary.
The judge ordered the commission to pay Camelot's legal
costs.
Camelot's bid includes the Post Office [GBPO.UL], while
Branson's bid involves KPMG Consulting, U.S. lottery operator
AWI <SLOT.O>, technology giants Microsoft <MSFT.O>, Compaq
<CPQ.N> and Cisco Systems <CSCO.O>, food company Kellogg Co
<K.N> and advertising group J Walter Thompson <WPP.L>.
((London newsroom, +44 20 7542 4299, fax +44 7542 3769,
rex.merrifield@reuters.com))
($1=.7062 Pound)
REUTERS |
