Jumbo Interactive seals Lotterywest deal in Australia13th November 2020 9:42 am GMT
Sydney-listed online lottery provider Jumbo Interactive has signed a definitive agreement with Western Australia's state government-owned lottery operator Lotterywest.
Following the signing of a binding term sheet at the end of September, Jumbo subsidiary TMS Global Services has now completed the signing of a ten-year contract to provide its online platform and services to the lottery.
The initial three-year contract will enable players to purchase online lottery tickets via Lotterywest’s gaming system, with an option to extend the agreement by up to an additional seven years.
As part of the agreement, Jumbo will receive a 9.5 per cent service fee for every customer transaction made through its white label platform.
Lotterywest will oversee the marketing strategy for players, while Jumbo will manage customer support on the white label platform on behalf of Lotterywest. Jumbo will only be able to market to new or existing customers as agreed with Lotterywest.
Lotterywest has the option to transition white label players to the Lotterywest website and app 12 months from the date of go-live, which is currently scheduled for late December.
“I am pleased that the Lotterywest agreement has now been signed on time and on terms as anticipated,” said Jumbo CEO Mike Veverka. “This is a major achievement for Jumbo securing our first government client setting up a solid long-term partnership and providing strategic opportunities for Jumbo.”
Shares in Jumbo Interactive Limited (ASX:JIL) closed up 8.27 per cent at AUD$13.87 per share in Sydney Friday.