The Victoria Auditor General is going to take a closer look at a controversial new partnership between the Lottery Corporation and the government of the Australian state.
On 5 May, the Victorian government announced a 40 year agreement with the Lottery Corporation, the largest provider of lottery products in Australia, formed via the 2022 divestment of gambling market leader Tabcorp’s lottery and keno division.
“We plan to examine if the public lottery licence extension optimised value for the state,” the Auditor General Office’s statement read.
The independent state body also confirmed that it would be investigating three state government departments – Department of Treasury and Finance, Premier and Cabinet and Justice and Community Safety, as well as the Victorian Gambling and Casino Control Commission (VGCC).
Alarm was raised at the duration of the contract, with the Lottery Corporation already holding a 10 year partnership with the state government until 30 June 2028.
The value of it has also raised concern, largely from the Labor government’s political opponents and advocates for gambling reform. The Lottery Corporation paid an upfront premium of AU$1.145bn (£992.4m) to secure the contract.
Critics of the deal include members of the local branch of the Australian Greens and leader of the Liberal Party opposition, Jess Wilson, as well as the Alliance for Gambling Reform pressure group.
Key criticisms are that the Lottery Corporation has close links to the Labor government of Governor Jacinta Allan, and that the deal was signed to give the government a stable source of income over a long period of time.
Critics have also accused the government of a lack of transparency, as a competitive tender did not take place.
“We know that the company (which) has been given the deal is a donor to the Labor Party,” said Wilson, “There are serious questions to answer about whether taxpayers have got value for money, but also the fact that this deal is clearly just a prop up the budget bottom line.”
The Auditor General’s report is expected to be published in the early stages of the next Australian financial year, which begins on 30 June 2026.
So far, the office has not added to the opposition politicians’ and gambling reform advocacy groups’ criticisms of the government, stating that:
“It is important that the process adopted by the government was supported by robust analysis and advice, and that a credible threat of competition was maintained during negotiations to help optimise value.”
