Competing in a highly regulated environment
A Camelot case study

Page 1: Introduction

Most UK citizens are familiar with the National Lottery and its potential for making millionaires of people who manage to select the ‘winning’ 6 numbers out of the 49 available, at odds of around 14 million to 1. Of course, many people win the smaller prizes; each week there are usually more than 1 million winners from among the 29 million participants. The National Lottery was...
Read full page

Page 2: The nature of regulation

Over the past thirty years, UK governments have come to realise that in order to control an industry they do not need to own it. Successive UK governments have reduced the state’s direct involvement in UK industry. Many industries that were previously owned and run by the state have been privatised eg steel, railways, water, gas and electricity. One major advantage to the government is that...
Read full page

Page 3: Regulating the National Lottery

The National Lottery Commission regulates the operation of the National Lottery. Its statutory duties are to: protect the interests of participants ensure that the lottery is run and promoted with all due propriety and, subject to these two obligations maximise the returns available for Good Causes. The Commission has strong powers. Amongst those wide-ranging powers it has the right and duty...
Read full page

Page 4: Some principles of good regulation

Effective regulation is a fine balancing act between ensuring a climate in which competition and enterprise can flourish, and providing the necessary protection for consumers and the wider community. When an industry is over regulated, there is less scope for that organisation to be innovative and to pass on the benefits of free competition to the consumer.The Government’s Better...
Read full page

Page 5: Operating in a competitive environment

Camelot has set clear strategic objectives for its second licence period. These include: to deliver target returns to Good Causes in a socially responsible way to increase the number of players and total sales to maximise player and retailer satisfaction through high levels of service to retain the trust and support of the general public to deliver healthy returns to shareholders. In order to...
Read full page

Page 6: Conclusion

The issue of whether the National Lottery is over-regulated is open to debate. Some people will argue that any form of activity where there is a possibility for someone to suffer harm or loss should be tightly regulated. However, the argument then is that the regulations should treat everyone in that industry in a similar fashion. Other people are of the opinion that in a modern market economy...
Read full page

Related: Travis Perkins
Case studies in Business Case Studies