Speaking at a forum in London on the future of the UK lottery, Wallis said retailers needed to earn more from the lottery to offset spiralling business costs. "The reward for retailers has remained constant over the period of the first two licences while they have been faced with inflationary pressure on costs. With no flexibility on margin, commission is worth far less than it was 12 years ago."
With higher rewards, retailers would be more motivated to boost lottery sales, he said.
National Lottery operator Camelot's sales director Steve Lucas said: "Our retail partners remain at the heart of our plans. We have been consulting with them in preparing our bid."
A spokesman for the National Lottery Commission, responsible for awarding the next National Lottery licence, said: "The level of commission will be factored in to bidders' proposals. We will look to be assured that the arrangements are sufficient to incentivise retailers."
Wallis also proposed that non-compliance with Camelot's targets for lottery sales should be penalised. And he said lottery sales were invaluable to retailers.
He further suggested that shoppers should be able to buy tickets at every till through the roll-out of integrated scanning systems.