In April, Camelot said it would increase its annual marketing spend from £58m to around £75m in its second term. However, it said this that could increase to £90m depending on sales.
This latest reported fall in the sale of lottery tickets could be enough to trigger that increase, as Camelot seeks a solution to halt the sales slide.
Camelot said sales had fallen below £5bn to £4.983bn last year for the first time in four years -- down 2.1% from the previous year. Pre-tax profits fell to £49.1m from £56m the previous year. It blamed the figures on disruption caused by the drawn-out legal battle against Sir Richard Branson's proposed People's Lottery for the seven-year licence.
The company said lottery sales were up 4% in the first half of 2000, but had dropped off after the licence issue began.
Sir George Russell, chairman, at Camelot, said, "This year has been very turbulent for Camelot and its staff. Despite this we have already hit £10bn against our original commitment of £9bn, and now even expect to exceed our increased target of £10.5bn by September 2001."
He added, "We shall continue to support a range of new and exciting games through significant marketing investment, during this fiscal year, as well as throughout the second licence."
Scratch card sales also fell by 2.6% to £546m last year, but the company donated £1.391bn to charity and good causes and a further £598m was paid in taxes. A total of £2.468bn was paid as prize money.
The lottery's creative advertising account is held by WCRS.