Branson-bashing Camelot is to make internet service provider Freeserve its exclusive online ticket outlet.

The companies have signed an agreement to build a co-branded website to sell the tickets and Camelot will initially offer online lottery tickets exclusively through the Freeserve site.

Camelot won a licence on Tuesday to operate the national lottery for a second seven-year term. Camelot's bid to continue operating the lottery beat a rival proposal from the nonprofit group People's Lottery.

This was to be run by Richard Branson with Bill Gates, chairman and chief software architect of Microsoft, serving as technology partner.

Financial details of the agreement were not released.