TATTS RECLAIMS SCRATCH-ITS IN VICTORIA
Written on the 27 October 2014
TATTS Group (ASX:TTS) will take over the public lotteries license in Victoria, expanding its market stronghold to include daily keno and scratch-its.
The Victorian Government gave the Brisbane-based betting company the green light, after Intralot exited the system.
The arrangement is set to boost Tatts’ EBITDA (earnings before interest, tax, depreciation and amortisation) with keno and scratch-its contributing $51.9 million to Intralot’s sales in FY14.
Tatts managing director and CEO Robbie Cooke says the company is excited to grow its services in the state.
“These products are highly complementary with our existing portfolio of lottery games in Victoria, which include the ever popular Tattslotto, Powerball and Oz Lotto,” Cooke says.
“With a 130-year history and having sold lotteries in Victoria dating back to 1954, Tatts is proud to be trusted with this opportunity and is committed to success.”
Cooke says more than 760 retail outlets will be able to access the same rang of instants offered in most other states in Australia.
As part of the new arrangement, Tatts must ensure the service isn’t disrupted for customers, protect state revenue and provide lower ongoing costs for selling agents.
Tatts will purchase ancillary assets from Intralot to ensure a smooth transition.
The license is expected to take effect in February 2015.