Encouraging Bidding in the Single Licence National Lottery Framework
19 November 2004
By Stuart Holder et al.
This report, prepared for the UK National Lottery Commission (NLC), examines the barriers to entry in bidding for the third National Lottery Licence, due to begin in February 2009. The authors review both the previous round of UK bidding in 2000 and 2001 and competitions to run lotteries that have taken place in other countries. They also consider franchising competitions and operations in other sectors of the British economy, as well as relevant economic literature on auctions. The report concludes that the key barriers to entry are the need to access suitable technology to arrange the handover from one system to another and recommends that the NLC consider options for dealing with the technical needs and capabilities of bidders both during and following the auction process.
