Smith Announces No Profit Lottery

"Once the initial franchise comes to an end in about three or four years, we can go for a non-profit organisation, so that every single penny that we can get goes either in prizes or to good causes rather than into the pockets of the people who are running it," he said.

Mr Smith refused to confirm or deny whether lottery profits will be included in the Chancellor's planned "windfall tax" on the privatised utilities.

Heritage Secretary Chris Smith

"The decision on whether or not to include lottery profits in the windfall tax is obviously a matter for the Chancellor and not for me ... what I am concerned about is to make sure that the way in which the lottery is being regulated is indeed good and tough on behalf of the people who play the lottery," he said.

Mr Smith has also begun a review of the millennium project to see if it can be delivered on time at the quoted cost.

"I've put that review already in hand. I've said it has to happen fast because the last thing we want is uncertainty and within a month or so I would hope we could take a firm decision about how to proceed," he said.