As reported by iGB, Australian lotteries and gaming operator Tabcorp has announced the signing of a long-term extension of its reseller agreement with Jumbo Interactive.
Covering the reselling of lottery products in New South Wales, Victoria, South Australia, Northern Territory, Australian Capital Territory and Tasmania, as well as international jurisdictions, the extension is set to run for 10 years until August 2030. Jumbo will pay $15m to Tabcorp as part of the renewal as well as a service fee of 4.65% of subscription revenue.
Regarding the price, it has been revealed that this will be phased in, starting at 1.50% in FY21, then 2.50% in FY22, and 4.65% from FY24.
Additionally, Jumbo is set to pay a service fee of 4.65% of the value in excess of $400m for the 2021, 2022 and 2023 financial years, when the value of subscriptions is over $400m for each applicable year.
Jumbo Chief Executive and Founder Mike Veverka said: “The agreements to 2030 provide Jumbo with the ability to continue growing lottery sales in Australia over the long term. This long-term focus is necessary to also grow the new ‘Powered by Jumbo’ SaaS business and achieve our ‘$1bn vision’ by 2022.”
Moreover, he also revealed that the arrangement is also set to support its target of achieving Aus$1bn ($718.0m) in ticket sales through its platform by 2022.
It must be noted however, that the extended deal does not cover the reselling of Tabcorp products in Western Australia, which represented around 10.5% of total ticket sales for Tabcorp in its 2019 financial year, as the operator does not currently hold a lottery licence.