* Camelot desires bill payment solutions at lottery terminals

* Provisional ruling cites competition grounds

* Choice criticised by mailbox managers

* Electronic payment firm PayPoint shares rise 32.8 pct

(Adds comment through postmasters)

by Rhys Jones

LONDON, July 16 (Reuters) - Britain's National LotteryCommission has rejected a software simply by Camelot [LOTT.UL],the business which in turn runs the particular UK sweepstakes, permit customers buycalling cards or spend bills upon its network associated with lottery terminals.

"The Commission is minded for you to refuse to grant consent toCamelot's application to attempt ancillary actions in thebasis in the EU/competition law concerns it raises," theNational Lottery Commission stated in Friday.

Camelot desires to offer mobile top up, calling cards forinternational telephone calls as well as electronic fund transfers,among other services, by means of its terminals.

The Particular commission extra that it is decision only agreed to be provisionaland that will anybody seeking for you to remark upon its original ruling shoulddo thus simply by Sept. 3.

Camelot said the particular commission's choice has been flawed and thatit was confident its proposals didn't breach your law.

"Camelot remains convinced that it is in depth and carefullyconsidered plans, depending on thorough and also robust legal advice,should let it provide commercial services via NationalLottery retailers," Camelot said inside a statement.

The Particular ruling was in addition criticised by the National Federation ofSubPostmasters, who ended up planning with Camelot in order to supply theservices through their particular network associated with Mailbox branches.

"Our concern is that the actual NLC's provisional refusal ofCamelot's application will lead to PayPoint using more workfrom submit offices as well as further jeopardise the particular network's future,"said General Secretary George Thomson.

Electronic payments firm PayPoint (PAYP.L) currently operatessimilar in-store payment http://www.lottery.com/ solutions to people proposed by Camelot.The organization asserted giving Camelot the green mild would havedistorted competition inside the bill payments sector.

Shares within PayPoint gained almost 33 percent to be able to 336.75 penceon your commission decision.

"It can be a essential selection and the market is reactingaccordingly," mentioned Numis Securities analyst David McCann.

"Our valuation associated with 380 pence occur April pertaining to this scenariotherefore kicks inside and we price the actual stock as a solid acquire along with a45 percent upside."

(Additional reporting by simply Rosalba O'Brien, Editing through JulieCrust, Samia Nakhoul as well as Michael Shields)