Jumbo Interactive signs white label deal with Lotterywest
1st October 2020 9:37 am GMT
Sydney-listed online lottery provider Jumbo Interactive has agreed a deal to provide its online platform to Western Australia state government-owned lottery operator Lotterywest.
Jumbo subsidiary TMS Global Services has signed a binding team sheet to negotiate a detailed agreement to cover the next ten years, which is expected to be completed in the coming months.
The deal will see Jumbo provide its Powered by Jumbo platform to Lotterywest, with an integration expected to be completed by 21 December, allowing players to directly purchase online lottery tickets via Lotterywest’s gaming system.
The contract will cover an initial three-year term, with an option for a further three and four year extension, at the discretion of Lotterywest.
Jumbo will receive a service fee for every customer transaction through the white label platform, with Lotterywest overseeing the marketing strategy for players. Jumbo will manage customer support on behalf of Lotterywest and can only market to new or existing customers as agreed with the lottery.
The binding term sheet contains a number of conditions that must be met before a final agreement can be signed, including Lotterywest effecting necessary legislative amendments and obtaining regulatory approvals, while Jumbo must provide guarantees for performance and financial obligations.
Shares in Jumbo Interactive Limited (ASX:JIN) closed down 2.00 per cent at AUD$12.25 per share in Sydney Thursday.
