The report covers his choice of Camelot Group plc as the operator of the National Lottery in May 1994, the launch of the on-line game in November 1994 and the introduction of the instant scratchcard games in March 1995.
Ticket sales had exceeded £1bn by the end of March 1995. This generated over £300m for the good causes which benefit from the national lottery.
The national lottery's success means that the good causes' percentage of revenue is higher than expected.
The report also explains how the regulator ensured that the lottery was launched in such a way as to ensure the probity of the operation, the protection of its players, and the maximisation of revenue for the good causes chosen by parliament.
'No one could have guessed just how successful the national lottery would be,' Mr Davis said.
'For millions of people across the United Kingdom it has become a major weekly event, and it has also generated enormous sums for the good causes. For the vast majority of people, the national lottery is a huge amount fun, which benefits many.'
- Director General of the National Lottery Annual Report 1994/95 (HC 755) is available from HMSO, ISBN 0-10-021215-8, price £8.25. 161056 10.