The British multinational venture capital company Virgin Group Ltd. is expected to officially announce its interest to become the National Lottery operator for the third time in two decades and a half.
Reportedly, the company, under the lead of its founder Sir Richard Branson, has been preparing to once again make an effort and replace Camelot Group as the sole operator of the state lottery. As revealed by The Times, Virgin Group’s team is willing to see the firm as the organiser of the UK National Lottery.
After mid-January 2020, bidders will be given 18 months to build up their cases. The final choice for the winner is scheduled to be made in 2021. The new operator is set to officially take control of the state lottery in 2023.
Virgin Group was established as a mail-order record business in 1970 into a music publisher and retailer. Currently, Sir Richard Branson has an empire that ranges from telecom to hospitality and airline services. In case he makes a decision to pursue further growth into the UK National Lottery, almost two decades since he last tried to do so, he would have to face serious rivalry.
According to experts, one of the most likely bidders for the state lottery’s operating license is Richard Desmond’s Northern & Shell that is currently running the Health Lottery. The continental lottery operator Sazka and the company that currently runs the People’s Postcode Lottery, Novamedia, are also rumoured to be preparing to unveil bids.
Sir Richard Branson’s interest in getting control over the UK National Lottery has been confirmed by sources close to Virgin Group.
UK Gambling Regulator Has Appointed Rothschild Bank to Choose the National Lottery’s New Operator
The National Lottery has been operating in the UK since 1994. It currently offers British lottery players to pick six numbers in an attempt to try a massive jackpot, with more than 50% of the overall proceeds generated by ticket sales being redirected to the prize fund. In addition, about 25% of these proceeds are used to fund good causes under the Parliament’s policy.
Since the beginning, Camelot Group was the one running the lottery, even after the company was purchased by the Ontario Teachers’ Pension Plan in 2010. During the decades of operation, however, the company has faced some criticism for its failures to provide more detailed information on how the money raised from the lottery are redirected to good causes.
Earlier this year, in July, the UK Gambling Commission (UKGC) that currently regulates the entire gambling sector in the country recruited Rothschild Bank to choose the new operator of the National Lottery. The process is also monitored by the accountancy firms EY ad Deloitte, and the law firm Hogan Lovells.
According to analysts, the offer of Virgin Group for the UK National Lottery would seek to make the latter’s operations more attractive to younger players. Under the lead of Sir Branson, the operator would probably consider strategies to boost the lottery’s online sales.
- Author
Olivia Cole
