Running Britain's national lottery is not as easy as it was

IN 1567 ELIZABETH I issued a prospectus for England’s first national lottery. A tight-fisted government was one impetus for the venture, which aimed to raise money for Britain’s ailing ports. Enticements for ticket-holders included freedom from arrest for a week (though only for petty crimes), and prizes worth up to £5,000 paid in cash, plate, tapestries and “good linen cloth”. Yet so few people bought the expensive tickets that the top prize had to be trimmed to a 12th of this offering—and loans had to finance the ports.

When today’s national lottery launched in November 1994, advertising was easier, trust in the organisers was higher and buying tickets was cheaper. It has since raised tens of billions for good causes and produced over 6,300 millionaires. Measured by numbers of players, it is Britain’s most popular form of gambling. In March the Gambling Commission will decide whether it should change hands. Camelot, which has had the operating licence since 1994, and other bidders, must contend with some fresh challenges. Over 500 years running a lottery may have become easier. But over the past 27 it has become harder.

Modern lottery operators must play their cards carefully. The aim is to sell a little to enough people so as to raise lots of money for good causes—and still make a profit. But they are meant not to...