(AsiaGameHub) –   The Lottery Corporation has secured a landmark 40-year extension to its Victorian public lottery licence, granting it 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 that 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 established in 2022 following the demerger of Tabcorp’s Lotteries & Keno division. It operates under the brands The Lott and Keno.

The payment is structured in two instalments: AU$250 million due on 3 July 2026 and the remaining balance of AU$895 million payable on 1 October 2026.

To fund the payment, The Lottery Corporation has arranged a committed AU$1 billion bank facility and plans to use approximately AU$145 million from its existing undrawn credit facilities.

Focus on operational continuity

The extended licence term marks a significant shift from the previous model of roughly 10-year licensing renewals in Victoria, under which the licence would have expired on 30 June 2028.

This new arrangement aligns the expiry date of the Victorian licence with those of the company’s other state licences and removes a medium-term renewal risk from its schedule. The next major licence renewal for the company is not expected until 2050, relating to New South Wales.

Victoria represents The Lottery Corporation’s second-largest jurisdiction by lottery turnover and third-largest by EBITDA contribution. Company forecasts indicate that nearly half of all adult Victorians participate in its lottery games each year.

The Lottery Corporation’s CEO, Wayne Pickup, welcomed the licence extension, stating that it will enable the corporation to “continue delivering safe, engaging and sustainable entertainment responsibly to Victorians for many years to come”.

The renewed licence includes specific measures to ensure operational continuity and maintain retailer relationships. Current Tatts franchisees in Victoria with active agreements will be eligible for renewed franchise contracts through to 2038, subject to meeting sales performance and compliance standards.

The company intends to invest in upgrading retail hardware and operating systems to support responsible gambling initiatives.

It “supports a vibrant lottery retail network based on small businesses and generates substantial lottery duty revenue to fund state and community services.”

‘A secret deal’

The decision has drawn immediate criticism from gambling harm advocates and opposition politicians. James Newbury, the shadow attorney general, accused Treasury Minister Jaclyn Symes—who announced the extension as part of Victoria’s budget—of striking a “secret deal” with the corporation.

“The revelation that the Lottery Corporation donated AU$177,000 to the Labor Party is deeply concerning,” he said.

“The Premier must explain why her Labor government entered into a secret agreement with a company while her party accepted hundreds of thousands in political donations at the same time,” he added.

“Given that Victoria is currently grappling with the worst corruption scandal in its history, the Premier must personally account for the details behind this so-called secret deal.”