British lottery operator Camelot has failed in a legal bid to halt talks between the lottery regulator and Mr Richard Branson's "People's Lottery" over the next contract to run the game.

The High Court rejected a request for the injunction after giving Camelot permission to seek a judicial review of the National Lottery Commission's decision to negotiate only with the People's Lottery.

No date was set for that hearing, which could order the commission to rethink its decision.

The commission last Wednesday rejected Camelot's proposal, citing concerns about the propriety of its US software supplier, GTech Corp. It also rejected Branson's bid but gave him a month to sort out fresh financial guarantees.