by Laura Rohde

From...

LONDON (IDG) -- Microsoft Chairman and Chief Software Architect Bill Gates and Richard Branson, chief executive officer of Virgin Group, are joining forces to nail down the next licence for the U.K.'s National Lottery, the two said in an interview aired by the British Broadcasting Corp. (BBC).

If Branson's Virgin Group wins the seven-year licence for the National Lottery from current licence holder Camelot Group, Virgin will establish the nonprofit People's Lottery in which Microsoft will serve as technology partner, Branson and Gates said on the Breakfast With Frost television show.

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Microsoft would provide the People's Lottery with software, technical support and get the lottery running over the Internet, mobile telephones as well as interactive television, Gates said in the interview.

"Lottery terminals in the past have not used PC technology and there hasn't been a way of leveraging all the things going on with the Internet. It's very right to say: 'Isn't there an approach that can cost a lot less money and can be a richer experience for those that want to use it?' -- and that's part of the vision," Gates said.

With the help of new technology streamlining the process and getting more people to gamble, the People's Lottery should raise an additional 2 billion pounds (US$3.18 billion) per year for charity, Branson said in the interview.

When asked if he had qualms about promoting gambling, Gates replied: "If people are going to gamble, shouldn't you make sure that the money that's generated by that goes to good causes?"

Branson and Gates did not discuss what profits, if any, Microsoft and the Virgin Group would make from running the lottery, though the U.K.'s The Sunday Business newspaper reported that Microsoft would be paid a fee by Virgin.

Camelot's licence to run the National Lottery expires this year and bids to run the lottery beginning in 2001 must be entered by next month.