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Tatt Gets 40-Year contract to operate lottery
11/28/2012 : TATTS SCOOPS SOUTH AUSTRALIAN LOTTO LICENCE
40-Year contract to operate lottery and keno services
Gaming firm The Tatts Group has paid A$427 Million to the South Australian Government for the right to operate South Australia's (SA) lottery and keno services for the next 40 years, effective December 10, 2012.
The price paid by Tatts is substantially more than the reported reserve price of A$ 400 million the Government had set.
Jack Snelling, South Australia's Treasurer said: "South Australians will continue to be able to play the lottery games they enjoy, the government will continue to receive gambling tax distributions and there are now significant funds that the government can invest in things such as roads, hospitals, schools and infrastructure."
The deal inevitably has its detractors with the South Australian opposition and Family First amongst others believing the price paid was too low.
The South Australian Treasury expects to collect annual gambling taxes in the region of A$ 60 million from the sale of lottery products, but said it would forego the A$20 million dividend paid by Lotteries SA.
Dick McIlwain, chief executive of Tatts said: "It's a good story for lottery agents and players in South Australia and it will be a good story also for Tatts group."
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