Tatts acquires 15 pct stake in Jumbo, extends agreements

Australian lottery giant Tatts Group Ltd has acquired a 15 percent stake in internet lotteries business Jumbo Interactive Ltd for A$15.7 million, according to a filing from Tatts last week to the Australian Stock Exchange.

Last week, 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.

More news from this jurisdiction

AustraliaFriday, Jul 21, 2017

Australia’s corporate bookmakers will be the hardest hit should South Australia’s point of consumption tax be adopted by other states in the country, says CLSA analyst Anthony Longo in a note on Friday.

AustraliaFriday, Jul 21, 2017

It’s now less than a month to go to the Australasian Gaming Expo, which is set to open at the new ICC Sydney in Darling Harbour on August 15 to 17, 2017.

AustraliaFriday, Jul 14, 2017

Aruze Gaming’s Australia arm has announced the appointment of Cameron Louis as general manager.

Australia, MalaysiaFriday, Jul 14, 2017

Malaysian casino operator Genting Group has sold its stake in Australia’s The Star Entertainment Group, according to sources speaking to AFR’s Street Talk.

AustraliaFriday, Jul 14, 2017

A merger between Australian casino operators Crown Resorts and Star Entertainment Group could deliver up to A$100 million (US$77.4 million) in cost synergies, according to Citi analysts who ran the numbers on the hypothetical deal.

AustraliaThursday, Jul 13, 2017

Australian wagering operator CrownBet has launched its own appeal against the recent decision from the Australian Competition Tribunal (ACT) approving the Tabcorp-Tatts Group merger.

AustraliaThursday, Jul 13, 2017

Australia’s gaming and gambling market is currently valued over US$18 billion. With massive growth comes greater challenges as well as new opportunities.