The Lottery Corporation has finalised a landmark 40-year extension to its Victorian public lottery licence, securing exclusive rights to operate commercial lotteries in Victoria until 30 June 2068.
Under the terms of the agreement, Tattersall’s Sweeps Pty Ltd, the company’s Victorian subsidiary which has held the licence since 1954, will pay an upfront premium of AU$1.145 billion (US$830 million) to the Victorian government.
The Lottery Corporation was formed in 2022 following the demerger of Tabcorp’s Lotteries & Keno. It runs brands The Lott and Keno.
The payment is structured into two instalments: AU$250 million due on 3 July 2026 and the balance of AU$895 million payable on 1 October 2026.
To finance the payment, The Lottery Corporation has secured a committed AU$1 billion bank facility and intends to utilise around AU$145 million of undrawn existing credit facilities.
Eyes on operational continuity
The extended licence tenure marks a departure from the previous practice of roughly 10-year licensing terms in Victoria. Under this practice, the licence would have been set to expire on 30 June 2028.
This extension now synchronises Victorian licence expiry with the company’s other state licences and eliminates a medium-term renewal event from its risk calendar. The company’s next significant licence renewal is expected only in 2050, pertaining to New South Wales.
Victoria represents The Lottery Corporation’s second-largest jurisdiction by lottery turnover and the third-largest by EBITDA contribution. Company forecasts estimate that nearly 50% of adult Victorians participate in its lottery games annually.
The Lottery Corporation’s CEO Wayne Pickup welcomed the licence extension, emphasising that it will allow the corporation to “continue to responsibly deliver safe, engaging and sustainable entertainment to Victorians for many years to come”.
The licence renewal includes specific provisions for operational continuity and retailer relations. Existing Tatts franchisees in Victoria with current agreements will be eligible for renewed franchise contracts through to 2038, subject to sales performance and compliance requirements.
The Lottery Corporation plans to invest in refreshing retail hardware and operating systems to promote responsible gaming.
The company “supports a vibrant lottery retail network underpinned by small businesses and generates material lottery duty revenue to fund state and community services.”
‘A secret deal’
The decision, however, has drawn swift criticism from gambling harm advocates and opposition officials. James Newbury, the shadow attorney general, accused Treasury’s Jaclyn Symes, who announced the extension as part of Victoria’s budget, of a “secret deal” with the corporation.
“Revelations that the Lottery Corporation has donated AU$177,000 to the Labour Party are nothing short of alarming.
“The premier needs to explain why her Labour government has done a secret deal with a company at the same time as her party accepts hundreds of thousands in political cash,” he said.
“With Victoria already facing the worst corruption scandal in Victoria’s history, the premier must personally explain the details around this secret deal.”
Kathryn Evans
Kathryn covers bitesize breaking news with a primary focus on EMEA and US legislation. A proud North Walian, fluent Welsh speaker and lifelong Wrexham FC fan – long before Hollywood came calling.
Original article: https://igamingbusiness.com/lottery/the-lottery-corporation-40-year-extension-victoria/
