Jumbo Interactive Limited has announced the launch of a Managed Services business in Australia with the signing of agreements with two foundation partners – Paralympics Australia and St John Ambulance Australia (VIC) Inc.
The operating segment, Managed Services, provides a complete lottery management service to not-for-profit organisations including prize procurement, game design, campaign marketing, customer relationship and draw management. It will compliment Jumbo’s existing lottery SaaS and lottery retail (OzLotteries.com) solutions.
Mike Veverka, CEO of Jumbo, said: “We are excited to launch the Managed Services business in Australia with our foundation partners Paralympics Australia and St John Ambulance Australia (VIC).
“The addition of managed services in Australia is aligned with our vision of ‘making lotteries easier’ and will assist many not-for-profits meet the challenges of COVID-19 and continue their fundraising efforts via a digital lottery program.”
Under the terms of the agreements, Jumbo will launch and operate new lottery games for each charity, as well as earn a fee for the provision of lottery management services, calculated as a percentage of total transaction value (TTV) in addition to a share of profits.
Collectively, the lottery games launched for each of Paralympics Australia and St John Ambulance Australia (VIC) are forecast to achieve annual TTV of circa $6.5m once established and fully operational.
The Paralympics Australia agreement also encompasses Jumbo Interactive becoming an official partner of the Paralympics Australia team. Both agreements are for a term of four years (two years initial term plus two years option to renew).
The Managed Services business in Australia is a natural progression of the Gatherwell UK business that was acquired in November 2019. Gatherwell has successfully refined the full lottery management business model over the past five years in the UK to a point where it can now be offered in Australia.
The Total Addressable Market (TAM) in Australia for Jumbo’s Managed Services business is
donations and bequests of approximately $10.5 bn according to the Australian Charities and Not-for-profits Commission’s Australian Charities Report 2018.