A new nationwide lottery due to launch in the autumn can exist side by side with Camelot say its operators.
Interlotto plans a September to November launch of the £1 a stake game.
Roy Fisher, who is running the project, said: "We are looking to compete in a different sector. We will not be offering prizes on that scale."
Interlotto dropped its north of England based Daily Number game in October after a poor reception. The 50p a ticket Lotto was to be relaunched through the 3,500 independents who originally carried it, but Interlotto cut ties with its Daily Number trading partner.
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