The introduction of a National Lottery in the UK in 1994 created a unique regulatory challenge. The response to this challenge is embodied in arrangements informed not by international precedent, but by privatization policies pursued by successive Conservative governments between 1979 and 1994. Dr Douglas assesses the success of the Lottery's regulation against the objectives set out in the enabling legislation: the upholding of the Lottery's propriety, the protection of the players, and the maximising of the funds to be applied to the good causes. Lessons learned during the initial licence period will inform the new seven year licence from October 2001, the operator chosen for the new term, and in particular the role of the profit motive within the new arrangements.