Shake-up of lottery could clear way for Branson

Sir Richard Branson, who was denied his dream to run the National Lottery, may be given a slice of the draw under plans to end Camelot's monopoly. Tessa Jowell, the Secretary of State for Culture, wants to divide up the game's licence and allow rival companies to run different parts of it.

The review, to be published as a consultation paper in the next few weeks, could lead to Sir Richard running the scratchcards, Camelot running the main draw – now rebranded as Lotto – and another operator running Thunderball.

At the moment, other companies can only run a game with the consent of Camelot, which beat Sir Richard Branson's not-for-profit "People's Lottery" bid last time. Its licence runs out in 2009. The changes will form part of a gambling Bill expected to be introduced to Parliament in the next session.

Camelot rejected claims that it had a monopoly. A spokes-woman said: "Nothing could be further from the truth," adding: "Our public view has always been that to Balkanise one of the world's most successful lotteries would be a mistake."

Ministers want to shake the lottery up and reverse the fall in ticket sales. Government sources are worried that its popularity has waned since its heyday under the hosts Anthea Turner and Carol Smillie, when it brought in £70m for a Saturday night draw. The move is believed to have the backing of the National Lottery Commission, which fears Camelot's veto over who runs lottery games has deterred potential bidders.

The Government has considered nationalising the lottery, but has ruled this out, partly because it could cost millions to buy the ticket terminals. One option may be to place the game under a non-profit government agency.

A spokesman for Sir Richard said he would only bid to operate the lottery again if it was run to raise money for charity.