A report came this week that gaming firm The Tatts Group has been awarded the right to operate South Australia's (SA) lottery and keno services for the next 40 years, effective December 10, 2012, in exchange for a A$427 Million payment to the South Australian Government.
This price significantly exceeds the reported reserve price of A$ 400 million that the Government had set.
According to Jack Snelling, South Australia's Treasurer, "South Australians will continue to be able to play the lottery games they enjoy, the government will continue to receive gambling tax distributions and there are now significant funds that the government can invest in things such as roads, hospitals, schools and infrastructure."
There's a certain amount of antagonism toward the deal in shape of the South Australian opposition and Family First amongst others who think the price paid by the company is too low. However, one should have in mind that the expected amount the South Australian Treasury is to collect in gambling taxes every year from the sale of lottery products is in the region of A$ 60 million;
The treasury also said it would forego the A$20 million dividend paid by Lotteries SA.
Commenting on the deal, Dick McIlwain, chief executive of Tatts, said: "It's a good story for lottery agents and players in South Australia and it will be a good story also for Tatts group."
This price significantly exceeds the reported reserve price of A$ 400 million that the Government had set.
According to Jack Snelling, South Australia's Treasurer, "South Australians will continue to be able to play the lottery games they enjoy, the government will continue to receive gambling tax distributions and there are now significant funds that the government can invest in things such as roads, hospitals, schools and infrastructure."
There's a certain amount of antagonism toward the deal in shape of the South Australian opposition and Family First amongst others who think the price paid by the company is too low. However, one should have in mind that the expected amount the South Australian Treasury is to collect in gambling taxes every year from the sale of lottery products is in the region of A$ 60 million;
The treasury also said it would forego the A$20 million dividend paid by Lotteries SA.
Commenting on the deal, Dick McIlwain, chief executive of Tatts, said: "It's a good story for lottery agents and players in South Australia and it will be a good story also for Tatts group."
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