Tesco denies it wants to run lottery

SUPERMARKET giant Tesco has distanced itself from a report that it could bid for the next licence to run the National Lottery.

Tesco said talks with regulators have taken place but were aimed at driving ticket sales higher and it was not considering joining a consortium for a lottery bid.

In January, the National Lottery Commission (NLC) urged potential bidders to come forward to discuss the most effective way of competing for the next licence.

Camelot - the current operator - has confirmed that it intends to bid for the licence which will begin in 2009.

According to the report in The Business newspaper, other parties tipped to join the race include gaming groups Gala and Rank.

With control of almost 30% of the grocery market and lottery terminals across its estate of supermarkets, Tesco is likely to be courted by parties lining up a bid.

But a Tesco spokesman said today: 'We have had discussions with the National Lottery, but these relate to our role as the second biggest retailer of lottery tickets after the Post Office.

'Our interest and that of our customers is in shorter queues for tickets, which also means more money for good causes.'

Tesco has trialled technology that enables customers to buy lottery tickets at the same time as they pay for their shopping at the main checkouts.

The supermarket giant piloted the FastPay scheme at 10 stores and plans to roll out the technology around the UK after finding it cut queues and spurred demand.