Australian online betting and lotto operator company Tatts Group paid $427 million for the license to operate South Australia’s lottery and keno services.
The deal between the gambling firm and the South Australian Government concerns the operating rights for the next 40 years. The agreement is fully compliant with the current Australian gambling laws, and is effective as of December 10, 2012.
According to analysts writing for the Australian gambling news services, the final price what Tatts paid is substantially more than the original reserve price of $400 million set previously by the Australian Government.
Jack Snelling, South Australia ‘s Chief Treasurer informed that the money from Tatts will be used for services that improve life quality in the community.
The Treasurer commented: “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 forgo the A$20 million dividend paid by Lotteries SA.
Dick McIlwain, chief executive officer of Tatts Group added: “It’s a good story for lottery agents and players in South Australia and it will be a good story also for Tatts Group.”