The National Lottery operator has won permission to expand its retail network by 8,000 outlets and claims the move will bring in an additional £1.7bn in lottery funding.

The National Lottery Commission has approved a proposal, lodged by Camelot in May last year, to increase its retail network by more than a quarter above its current level of around 29,000. This increase of 8,000 new outlets – destined for rural areas and Post Offices – will still leave the National Lottery with a smaller retail presence than newcomer Health Lottery, which purports to have about 40,000 around the country.

Welcoming the NLC approval today, Camelot said the expansion would propel a significant increase in lottery funding. The operator estimates the move will result in an extra £1.7bn, of which £1.2bn will be spent on good causes and up to £750m of which it predicts will come in before 2019.

Camelot managing director Andy Duncan said he was delighted with the NLC decision. “The extension of our licence makes such a significant expansion of our retail estate economically viable and will allow us to build on our very successful track record as operator of the National Lottery,” he said.

This announcement and Camelot’s prediction follows wider speculation as to the future growth of the National Lottery. Last month the Department for Culture, Media and Sport issued a statement estimating that lottery funding could increase by £1bn in the next five years as a result of the trend of higher ticket sales. At the announcement Camelot did not endorse the DCMS predictions, but has today congratulated itself for having reached record sales in 2010/11.