THE NATIONAL LOTTERY operator has terminated its licensing contract with CardCall as Mercury Communication sues the controversial phonecard firm over unpaid bills. CardCall's lottery-branded cards were launched into choppy waters last September, waters that were later muddied by revelations that Cardcall founder and vice-president Michael Zwebner was an undischarged bankrupt. The cards used Mercury's 0500 telephone service but the facility has since been withdrawn because of a dispute with CardCall over payment. In the meantime, Camelot's National Lottery Enterprises division has agreed to underwrite the cost of calls made on any phonecards still in circulation and will attempt to obtain reimbursement from CardCall.