Landmark 40 Year Victorian Lottery Licence Extension
| Stock | The Lottery Corporation Ltd (TLC.ASX) |
|---|---|
| Release Time | 5 May 2026, 8:20 a.m. |
| Price Sensitive | Yes |
Lottery Corporation Secures 40-Year Victorian Licence Extension
- Early 40-year licence extension (vs 10 years historically)
- Strengthens national licence portfolio, lowers business risk
- Next major licence renewal not until 2050 (NSW)
The Lottery Corporation has reached an agreement with the Victorian State Government to extend its Public Lottery Licence by 40 years, from the current expiry date of 30 June 2028 to 30 June 2068. This represents a significant extension compared to the historical 10-year licence terms. The extension secures the company's position as the exclusive provider of commercial lotteries in Victoria, its second largest jurisdiction by lottery turnover and third largest by EBITDA. The 40-year extension aligns with the company's strategy to enhance its national licence portfolio, with the next major lottery licence renewal not due until 2050 (NSW). This provides long-term earnings certainty and lowers the business risk profile. The company will pay an upfront premium of $1,145 million for the licence extension, which is consistent with prior long-term lottery licence acquisitions. The extension allows the company to continue providing Victorians with an attractive portfolio of lottery games, while supporting its lottery retail network and generating material lottery duty revenue for the state. The company also intends to amend its dividend policy to 80-100% of NPATA, helping to deliver consistent and reliable dividends and support total shareholder returns.
The company expects the Victorian Licence Extension to have no impact on FY26 dividends. From FY27, the company intends to amend its dividend policy to 80-100% of NPATA before significant items, which is forecast to be ~$44 million in FY27.
The 40-year licence extension significantly lowers the risk profile of the business and secures the company's position as the national lottery operator, with the next major lottery licence renewal not until 2050. This provides the company with confidence and long-term certainty over a significant portion of its operations and cashflows, enhancing its competitiveness and growth potential.