Camelot intensifies efforts to expand

The group outlined measures it hopes will reverse the National Lottery Commission's (NLC) recent initial decision to block proposals that would see it provide mobile phone top-ups and electronic bill payment services.

Camelot said the NLC had agreed to consult on the remedies put forward – which include a commitment to full transparency, such as publishing separate accounts for the new business and employing a competition law officer to police the service.

The NLC has now extended its review to September 17, but Camelot claimed each month of delay was costing around half a million pounds of lost donations to good causes.

The NLC, which has been reviewing Camelot's proposals since February, announced a provisional decision last month to refuse the plans on the grounds it could breach European or competition laws.

The Lottery watchdog said the risks to competition outweighed the "relatively small" returns that would be generated for charities and good causes.

It pointed out Camelot's lottery business generates around 1.6bn a year for good causes, while the proposed additional services were previously estimated to raise some 5m a year.

Camelot said it still believes the NLC's decision was "flawed and contained legal errors", but wanted to address the concerns to get the project off the ground.

It said it would report costs and revenues for the new service separately to show it was not breaking any competition laws.

The company has also committed to a "fair trading condition", which it said was common in a range of industries where dominant players branch out into new markets.

Camelot said: "We're going to give service providers, retailers and consumers more choice, better service and attractive prices. And, at the same time, give back over 80 per cent of our profits to the good causes."

The firm's plans have the backing of groups such as the National Federation of SubPostmasters, the National Federation of Retail Newsagents and retail chain Nisa-Today, who believe it would provide extra revenue.

But rival local-payment group PayPoint opposes Camelot's plans, saying it would be wrong if Camelot were to be allowed to exploit its monopoly position.