Sir Richard Branson's People's Lottery said it could raise �15bn for good causes

Earlier this year the lottery regulator warned that the lottery could fall �5bn short of its target for good causes in coming years.

When bidding began last year for the next seven-year licence to run the lottery, both Camelot and Sir Richard Branson's People's Lottery predicted they would raise �15bn for good causes.

One of Mr Grade's biggest priorities will be fighting proposals for reforming the gambling industry, which Camelot fears could damage its ability to raise money for good causes.

He brings to this position tremendous experience within the entertainment, television and leisure industries that will be invaluable to Camelot as the business seeks to develop opportunities to maximise returns to the good causes

Sir George Russell

The former Channel 4 boss, who remains executive chairman of Pinewood and Shepperton Studios and chairman of the Octopus publishing group, is also likely to use his broadcasting experience to lobby for a relaxation of the rules restricting the way television can cover lottery draws.

BBC's media correspondent, Nick Higham, said: "Mr Grade is much more flamboyant than his predecessor Sir George Russell, who quietly steered the company through many stormy episodes, including the revelation that one of its founder shareholders tried to bribe Sir Richard, and last year's long drawn-out battle over the renewal of Camelot's licence."

Sir George said he was delighted that Mr Grade was taking over as chairman.

"He brings to this position tremendous experience within the entertainment, television and leisure industries that will be invaluable to Camelot as the business seeks to develop opportunities to maximise returns to the good causes.

"When Michael takes over in January, Camelot expects to have completed the huge task of installing 25,500 new terminals across the network."