SA Lotteries product rights sold in 2012 for $427 million by South Australian government to national Tatts Group

Souuth Australian Labor government treasurer Jack Snelling said in 2012 that SA Lotteries could not keep operating independently of an interstate bloc of lottery businesses.

The South Australian Labor government in 2012 sold the rights to sell SA Lotteries products for the next 40 years to the national Tatts Group for $427 million.

The John Olsen Liberal state government had failed in its attempt to sell off the Lotteries Commission around the year 2000 when it lost its majority in the South Australian parkliament’s House of Assembly and independent members of the Legislative council held the balance of power.

Souuth Australian Labor treasurer Jack Snelling said, with the sale to the Tatts Group, the government would still earn $60 million annually from taxation from SA Lotteries wagering: "SA Lotteries returns about $80 million every year to the state government. Of that $80 million, $60 million is in tax. That $60 million will remain." This would leave a $20 million dividend every year going to Tatts Group as the operator of the business.  The government would remain owners of the SA Lotteries brands and gambling taxes and unclaimed prizes would still be paid into hospitals and sports funds.

Snelling said SA Lotteries could not keep operating independently of an interstate bloc of lottery businesses. Tatts Group chief executive Dick McIlwain said SA Lotteries would benefit by joining with a national business: “It means now that, with New South Wales, Queensland, Victoria, Australian Capital Territory, Tasmania, that the size and the game structures that we offer for lottery players is now secured well into the future, so it's a good story for lottery agents and players in SA”

Family First party member of the Legislative Council, Rob Brokenshire, said the state government had accepted too low a price: "I chaired the inquiry into the privatisation of the forests for $670 million and this is worse. The Lotteries are consistently returning the same as Forestry SA to government yet it's been sold indefinitely for $143 million less. The government have just thrown away the last good asset that we have remaining. Since 1965, consistently (Lotteries SA) has delivered a great dividend and now we're going to give half of that away simply because the government stuffed the books and now want them fixed before the next election." Liberal party opposition treasury spokesman Iain Evans said the sale was an attempt to address soaring state debt.

Tatts Group already owned the South Australian TAB that it bought in 2001.