Victoria extends Lottery Corporation's licence 40 years to 2068 for AU$1.145bn; opposition alleges 'secret deal'

The Lottery Corporation has finalised a 40-year extension of its Victorian public lottery licence, giving it exclusive rights to run commercial lotteries in the state until 30 June 2068, according to the company's announcement as reported by iGaming Business.

The licence is held by Tattersall's Sweeps Pty Ltd, the company's Victorian subsidiary, which has held it since 1954. The Lottery Corporation was formed in 2022 after the demerger of Tabcorp's Lotteries & Keno business and operates the brands The Lott and Keno.

The financial terms

Under the agreement, Tattersall's Sweeps will pay the Victorian government an upfront premium of AU$1.145 billion (about US$830 million). The payment is split into two instalments: AU$250 million due on 3 July 2026 and the remaining AU$895 million due on 1 October 2026.

To fund it, the company said it has secured a committed AU$1 billion bank facility and intends to draw about AU$145 million from existing undrawn credit facilities.

The length of the extension departs from the earlier practice of licence terms of roughly 10 years in Victoria. On that basis, the licence would have expired on 30 June 2028. The extension aligns Victoria's expiry date with the company's other state licences and removes a medium-term renewal event from its risk calendar. The company's next significant renewal is expected in 2050, for New South Wales.

The source material says Victoria is the company's second-largest jurisdiction by lottery turnover and its third-largest by EBITDA contribution. It also cites company forecasts that nearly 50% of adult Victorians play its lottery games each year. That figure is a company estimate and has not been independently verified in the material provided.

Retailers and the company's commitments

The renewal includes provisions on retail operations. 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 company also plans to invest in refreshing retail hardware and operating systems, which it linked to promoting responsible gaming. The source does not describe what those changes involve.

Chief executive Wayne Pickup welcomed the extension, saying it would let the corporation "continue to responsibly deliver safe, engaging and sustainable entertainment to Victorians for many years to come". The company also said it "supports a vibrant lottery retail network underpinned by small businesses and generates material lottery duty revenue to fund state and community services". These are the company's own characterisations.

Political criticism

The source reports that the decision drew swift criticism from gambling harm advocates and opposition officials. However, it quotes only one critic and does not name any harm advocates or set out their objections.

The critic was James Newbury, the shadow attorney general. He accused Jaclyn Symes, described in the source as being from Treasury, of a "secret deal" with the corporation. Ms Symes announced the extension as part of Victoria's budget.

"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," Mr Newbury said.

Mr Newbury also referred to "revelations" that the Lottery Corporation had donated AU$177,000 to the governing party, calling them "nothing short of alarming". The source does not give the timing or recipient of the donations, and it records no response from the government or the company to the allegations. The allegation of a secret deal is the opposition's claim and has not been substantiated in the source material.

What is not disclosed

The material does not set out the licence's harm-minimisation conditions, any independent valuation behind the AU$1.145 billion premium, or how the government will use the proceeds. It also does not say whether the extension followed a competitive process. These details would help in assessing both the opposition's claims and the company's assertions about responsible delivery.