THE crisis over the future operation of the National Lottery continued to develop last night as Camelot stepped up the stakes by putting more money into good causes, and calls were made for further resignations - not least that of Culture Secretary Chris Smith.

The furore has continued to develop following a court ruling which has made it clear that the whole relicensing process is in a mess caused by the National Lottery Commission itself.

Last night, Camelot indicated that, while the resignation of Dame Helena Shovelton from her position as chairman of the commission was a step in the right direction, it would not be upset if additional heads were to fall.

Shadow Culture Secretary Peter Ainsworth accused the Government in general and Mr Smith in particular of getting the facts completely wrong.

''Chris Smith is in an exposed position because he actually welcomed the decision of the commission to kick Camelot out of the competition,'' he said on BBC's Today programme.

While the whole process of issuing a fresh licence to run the game from October next year seemed to be in complete chaos last night, Camelot insisted that it would do everything in its power to ensure there was no interruption over any takeover.

However, with further lawsuits now threatened, and Camelot saying it could continue to run the lottery for only a limited period after its current licence expires, there were grave doubts over whether agreement could be reached in time to prevent a suspension of the lottery.

Culture Minister Alan Howarth yesterday insisted that, despite the chaos surrounding the licence, a new contract could still be awarded in time for an operator to be in place by next October's deadline.

Backing up its claim to continue as operators of the lottery, Camelot yesterday promised an additional #500m towards good causes.