Camelot is making further attempts at rescuing its bid to keep running the National Lottery by buying out the UK branch of GTech - the company responsible for supplying its software.

Camelot is making further attempts at rescuing its bid to keep running the National Lottery by buying out the UK branch of GTech - the company responsible for supplying its software.

Camelot, based in Tolpits Lane, West Watford, announced the buy-out of GTech last week, believing the move will increase their chances of being allowed to compete against rival Sir Richard Branson's People's Lottery.

Camelot was required to take drastic action to get back in the running after the National Lottery Commission rejected both bids but then said it would enter into negotiations with only The People's Lottery.

The commission highlighted concerns about Camelot's ability to run the event, citing specifically the problems they had with GTech's management as the reason why it would not involve Camelot in the new competition process.

The commission has been informed of the GTech buy-out but, as yet, has made no response.

Chief executive designate of Camelot Dianne Thompson said: 'We are surprised we have had no response from the National Lottery Commission to what is a clearly watertight solution to their key objection to allow us to compete further for the next lottery licence.

'It is clearly in the interests of players and the good causes involved that the commission urgently considers our proposal and bring us back into the competition on a fair and reasonable basis.

'We belive we should be allowed back in.'

Under the proposed buy-out, Camelot will take complete control by acquiring all terminals and relevant software from G-Tech, take on 70 of its staff and take over responsibility for all system error correction.

Having complete control is vital to Camelot's bid, as it was a software error that led to prize-winners being underpaid between November 1994 and July 1998.

Camelot has confirmed, despite the commission's silence on the issue, it would move ahead with the GTech agreement and would have it finalised within one month.

Camelot will find out if their action is successful at a three-day judicial review which begins next Friday, which will decide whether they will be allowed to re-enter the contest for the National Lottery licence.

A spokesman for Camelot said: 'We have directly addressed the problems the commission had with us.

'We are, therefore, confident we will win the judicial review.'

Watford MP Claire Ward fully supports Camelot's fight to compete for the licence, and visited its offices last Thursday.

The National Lottery Commission were unavailable for comment at the time of going to press.