Australian lotteries juggernaut The Lottery Corporation Limited (TLC) has entered into a new 40-year agreement with the Victorian State Government under which it will continue providing exclusive commercial lotteries in the state until 30 June 2068.
TLC said the agreement follows a period of exclusive, bilateral negotiations between the government and company subsidiary Tattersall’s Sweeps Pty Ltd and better aligns the license term with its other long-dated major state-based licenses. The license, held by the group since 1954, has historically been offered on 10-year terms and was set to expire on 30 June 2028.
As part of the deal, TLC said it will pay an upfront premium of almost AU$1.15 billion.
“The Lottery Corporation is delighted to have agreed an extension of the Public Lottery License with the State, securing our future in Victoria through to 2068,” said TLC’s Managing Director and CEO, Wayne Pickup.
“The 40-year extension strengthens our national license portfolio and will help shape the next chapter of the company’s growth. The longer-term extension also significantly lowers the risk profile of the business and secures our position as the national lottery operator, with our next major lottery license renewal now not until 2050.
“Typically, almost one in two adult Victorians play our lottery games each year – some of which are among Australia’s most recognized and iconic brands. Today’s license extension allows The Lottery Corporation to continue to responsibly deliver safe, engaging and sustainable entertainment to Victorians for many years to come, while supporting a vibrant lottery retail network underpinned by small businesses, and generating material lottery duty revenue to fund state and community services.”
TLC said the extended license provides a material increase in the average remaining term of its national portfolio of licenses, with the next major lottery license renewal, in New South Wales, not due for another 24 years in 2050.
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