Internet service provider Freeserve, acquired by French rival Wanadoo earlier this month, is to sell national lottery tickets through a new website.
Freeserve becomes the second winner, after Camelot, of the UK Lottery Commission's decision to allow Camelot to retain its franchise to run the lottery.
However, the potentially lucrative deal could still be dashed if Richard Branson's People's Lottery group decides to appeal.
The Lottery Commission had previously ruled Camelot's bid invalid, but the decision was overturned on judicial review.
Both bids include plans to allow players to use the internet, digital TV and mobile phones to buy lottery tickets.
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