Australia’s Tatts Group has expanded its long-term partnership with Sydney-listed lottery operator Jumbo Interactive and acquired a 15 per cent stake in the business.
Jumbo is a re-seller of lottery games online in Australia through an existing agreement with Tatts, and operates OzLotteries.com under the supervision of NSW Lotteries, SA Lotteries and Tatts.
Tatts purchased 6.6 million newly issued Jumbo shares at A$2.37 per share, with a 12-month option to acquire another 3.5 million shares at the same price, subject to shareholder approval. The deal also extends all of Tatts’ current reseller agreements with Jumbo (in NSW, VIC, SA, N.T. and Fiji) for five years, with further provisions to continue beyond 2022.
Under the agreement, Tatts will also provide an expanded product portfolio to include the popular “Set for Life” game. The reseller agreements will include termination rights for Tatts, allowing the company to terminate each of the reseller agreements under certain conditions.
“These new arrangements strengthen the long-standing commercial relationship between Tatts and Jumbo,” said Tatts in a statement.
Jumbo Interactive Limited (ASX: JIN) sells lottery tickets online throughout the world including in North America, Europe and the Asia-Pacific. Locally, Australian lottery tickets can be purchased on Jumbo’s flagship website, OzLotteries.com. The website was launched in 2003 through partnerships with Australian lotteries and The Tatts Group and sells tickets for lottery draws such as Oz Lotto and Powerball.
Sources: agbrief.com & Jumbo Interactive