Digital lottery company Jumbo Interactive has extended its resale agreement with Tabcorp for a further 10 years.
This extension comes after a binding term sheet was signed on June 28 and will apply to all States and Territories, except Western Australia and Queensland.
“The next 10 years will see a lot of advances in the lottery industry both in Australia and abroad. The new 10-year reseller agreements are the longest ever term in Jumbo’s history and provide a basis for continuing expansion,” Mike Veverka, CEO and Founder of Jumbo Interactive, said.
“In addition, growing the Australian online lotteries business with continued access to Tabcorp’s existing successful portfolio of lottery games, Jumbo will continue to pursue international lottery opportunities, leveraging Jumbo’s lottery software-as-a-service (SaaS),” he added.
For this 10-year extension, Jumbo will pay an upfront fee of $15 million to Tabcorp and a service fee totalling 4.65% of the ticket subscription price. This fee will begin at 1.5% in FY21, 2.5% in FY22, 3.5% in FY23 and 4.65% for every year after that.
From FY21 to FY23, and when the subscriptions exceed $400 million per year, Jumbo will pay an additional 4.65% of the exceed value.