Edward Leigh

Camelot's profits should be used to fund good causes if lottery ticket sales fall in future, the public accounts committee has said.

As the lottery operator scales back its predictions for the amount that will be awarded to good causes, MPs say it should reduce profits rather than see less money going to charities and worthy projects.

Since relaunching as Lotto earlier this year, Camelot has seen ticket sales falling a further five per cent - prompting renewed fears about the cash available to good causes.

Latest results from Camelot show returns to good causes fell by £56 million.

In a report into future lottery contracts, the cross-party public accounts committee says any shortfall should be funded from the profits of the operator.

The committee argues that charities should not suffer because the operator got its sums wrong when re-bidding for the lottery contract.

It argues that in future, the lottery operator should "bear more of the risk" if sales fall short of predictions.

Edward Leigh, the chairman of the committee, said: "There should be some mechanism by which the operator will make no profit or a loss or go out of business if returns to good causes fall.

"Bidders provide their own estimates of ticket sales as part of the bidding process, they should therefore bear the consequences should sales fall short."