Ministers are "seriously considering" moves to nationalise the lottery, it emerged on Sunday.

In a Sunday Telegraph interview, Tessa Jowell reveals that the government may act to halt falling ticket sales.

Despite being rebranded as the "Lotto", the lottery has been hit by declining sales which has in turn hit the revenues available for good causes.

Ticket sales have fallen by 5.2 per cent over the last two years.

Stakes have fallen from £5.5 billion in 1997 to £4.8 billion.

A series of controversies over the allocation of cash to community organisations has hit public confidence - which is thought to be a factor behind the slump in sales.

The role of Camelot, the private sector lottery operator, has also come under scrutiny following rows over payments to bosses and the level of profits "creamed off" the funds available for community projects.

The culture secretary said that state control was back on the agenda - despite a contract with Camelot running to the end of the decade.

"I am very interested in exploring that possibility," she said. "We are seriously considering it."

The government is to publish a white paper on the lottery's future early next year.

In a bid to re-focus twice weekly draws on the "public good", proposals will include a common logo to brand lottery funded projects and a new independent body to distribute cash to mainstream community groups.

Re-orientating the lottery back to its public spirited purpose revives the debate over ownership of the game's operator.

Rows over ownership and a bitter feud for control between Camelot and a not-for-profit scheme championed by Virgin boss Sir Richard Branson have dogged the lottery since the outset.

Jowell hinted that restoring confidence may well mean bringing the game under public control via a non-profit agancy.

"What matters about the lottery is that it works for the public good, that it represents good value for money and that the minimum amount of money is creamed off to meet costs," she told the Telegraph.

Camelot maintains that the UK's twice-weekly game continues to be a success.

"We have always known [nationalisation] is an option and would set out our case as part of any review," said a spokesman.

"We believe the current structure has proved that we have been able to create one of the most successful lotteries in the world."