Australia’s largest privately owned company might be about to lose the monopoly it has held for half a century on Victoria’s lotteries market. With a turnover of more than A$14.5 billion (US$11.2 billion) and reported profits of A$297.5 million (US$230.26 million) over the last financial year, it is hardly surprising that Tattersalls is fighting its corner. The exclusivity contract is due to expire 30 June 2007 but the company maintains that Victoria is not a large enough market to support multiple lottery operators.

State Gaming Minister John Pandazopoulos has announced a new competitive application process that could allow up to three licences. Tattersalls issued a statement on 23 March saying that the company “welcomes the Victorian Government’s announcement of the next stage in the review of the Victorian lotteries licence,” adding that it expects to be the clear leader for the tender. Present restrictions on Tabcorp and Crown are expected to be lifted so that they could enter the bidding process, and it is believed that Racing Victoria and Cricket Australia may form a consortium to apply for a licence.

Tattersalls was founded in 1881 when Publican George Adams arranged a public sweepstake of the Sydney Cup. In 1895 the company moved to Tasmania where it ran the Tasmanian Lottery by invitation of the Tasmanian government. Now Melbourne-based, Tattersalls runs lotteries in four Australian jurisdictions, five Pacific Island nations and is a partner in South Africa’s first national lottery. In November 2004 the company invested A$40 million (US$30.96 million) upgrading its technology with a new lottery system. It also supports the government decision to incorporate responsible gaming requirements into future licences.

Any new licence issued after next June will run for a 10-year term, according to government proposals, an increase of 3 years on the present licensing period. The Victorian government is also known to be interested in the creation of an Australian national lottery. Registration of interest in the Victorian lottery will be called for before the state government prepares a short-list of bidders later in the year.
(E-03.29.05)

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