Licence extension will see Sydney-listed lottery provider continue as Victoria’s state lottery operator until at least 2068
The Lottery Corporation (TLC) has secured a new long-term agreement with the Victorian State Government to continue as its lottery operator until at least 2068.
The new 40-year extension of the Public Lottery Licence follows a period of exclusive, bilateral negotiations with the Australian state government.
Through subsidiary Tattersall’s Sweeps Pty Ltd (Tatts), TLC has held the licence since 1954. Historically, the licence has been offered on 10-year terms and was set to expire on 30 June 2028.
The Public Lottery Licence has now been extended to 30 June 2068, securing TLC’s position as the long-term exclusive provider of commercial lotteries in Victoria.
The company will pay an upfront premium of A$1,145 million for the Victorian licence extension, which is said to provide improved terms compared to the existing licence.
“The Lottery Corporation is delighted to have agreed an extension of the Public Lottery Licence with the State, securing our future in Victoria through to 2068,” said TLC managing director and CEO Wayne Pickup. “The 40-year extension strengthens our national licence 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 licence renewal now not until 2050.”
Pickup continued: “Typically, almost one in two adult Victorians play our lottery games each year – some of which are among Australia’s most recognised and iconic brands. Today’s licence 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.”
The agreement provides long-term earnings certainty in TLC’s second largest jurisdiction by lottery turnover and third largest by lottery EBITDA.
The renewed deal also provides benefits for small business lottery retailers, including a 10-year extension of Victorian retailer agreements for TLC’s lottery network partners, and a refresh of hardware and operating systems to help enhance the company’s responsible play delivery and the digitally enabled player experience.
It also secures the company’s national lottery operating footprint across all Australian states and territories (other than Western Australia) and is complemented by the Federal Government’s recently announced proposed reforms to “crackdown on harmful and emerging online lottery products”.
The payment for the Victorian licence extension is scheduled to be paid in two instalments, with A$250 million paid on 3 July and A$895 million paid on 1 October.
The up-front licence fee will be settled through a new A$1,000 million bank loan facility, combined with approximately A$145 million under existing undrawn debt facilities.
In the coming months, TLC will consider access to long-term debt funding markets as part of its broader financing strategy.
The company said that the licence extension is not expected to impact any FY26 dividends.
Shares in The Lottery Corporation Ltd (ASX:TLC) closed 2.01 per cent higher at A$5.57 per share in Sydney Tuesday following the announcement.