NSW Lotteries sold in a $1 billion dollar deal
NSW Lotteries - currently the largest state lottery in Australia that generates over $1.3 billion in annual sales has been sold in a deal worth more than $1 billion dollars. The NSW government explained that it's a big move to sell the state's lottery but this decision will be beneficial to the state and to its people.
NSW Treasurer Eric Roozendaal said that the Government has accepted the offer to transfer NSW Lotteries Corporation to Tatts Group Limited. The transaction that was made from NSW Lotteries Corporation to its new owner includes a grant of an exclusive 40 year license to conduct public lotteries in NSW, excluding Keno.
Under the signed agreement, NSW Lotteries Corporation will transfer $160 million dollars to the State Government prior to completion. Tatts Group will then pay the NSW Government an amount of $850 million to cover the license and purchase.
The Treasurer explained that the total proceeds of the sale will go directly to improving funding for teachers, police, nurses and others who provide frontline services. He also mentioned that taxpayers would continue to benefit from the ongoing payment of duties from the sale of lotteries products, which amounted to $330 million in the last financial year.
There has been some speculation that revenue from the sale will go towards funding the coming election, however, these rumours have not been confirmed.