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Remove items from your saved list<\/a> to add more.<\/p>\n AAA<\/p>\n Victoria\u2019s auditor-general will investigate whether the state\u2019s 40-year lotto extension was good value for taxpayers amid criticism over the secretive process behind the exclusive deal.<\/p>\n The Allan government passed laws that allowed the multi-decade deal to be negotiated in private, a month after financial analysts praised The Lottery Corporation (TLC) for its \u201cproactive\u201d efforts to renew the licence early.<\/p>\n The Victorian Auditor-General\u2019s Office has revealed it will now investigate how the government awarded the extension, including whether it was good value and truly competitive.<\/p>\n \u201cIt 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,\u201d the auditor-general\u2019s office website says.<\/p>\n \u201cWe plan to examine if the public lottery licence extension optimised value for the state.\u201d<\/p>\n The Department of Justice and Community Safety insists the deal was overseen by probity advisors and included a \u201cmarket sounding process\u201d to determine domestic and overseas interest, a claim at least one competitor has rebutted.<\/p>\n The shock 40-year extension<\/a> of the licence was announced by TLC on May 5, the day the Victorian budget was released, through an announcement to the stock market.<\/p>\n In that notice, TLC said the deal came from \u201cexclusive bilateral negotiations\u201d including a $1.145 billion upfront \u201cpremium payment\u201d.<\/p>\n The deal sparked criticism from the state opposition, competitors and gambling advocates because of its length and the fact that there was no publicly visible tender process.<\/p>\n The Age can reveal the government was able to conduct these negotiations behind closed doors because of legislation it passed in June 2025. The new powers granted the minister the ability to extend the licence for a time of their choosing, compared to the 12-month extension previously allowed.<\/p>\n Related Article The law changes allowed the government to reach out to TLC and negotiate a multi-decade extension in secret, an option that was not on the table when the licence was subject to a bidding process in 2017.<\/p>\n Large gaming licences are typically canvassed about two years before they expire, with TLC\u2019s 10-year licence not due to finish until 2028.<\/p>\n But in 2024 and 2025 financial analysts believed TLC was already pushing for a renewal, praising the company for its early approach to securing an extension.<\/p>\n Citi analysts provided advice in June 2024 that TLC was well-placed to improve its dividends to shareholders \u201cas it attempts to renew its Victorian lottery licence earlier than the 2028 expiry\u201d.<\/p>\n In March 2025, Citi analysts lauded departing chief executive Sue van der Merwe for her \u201cproactive approach to seeking an early renewal of the Victorian lottery licence\u201d.<\/p>\n A month later, the Allan government introduced new laws into parliament that allowed the minister to choose how long the lottery licence could be extended for and allowed negotiations to be held in private.<\/p>\n The Citi advice shows that financial analysts understood TLC to already be pushing for renewal at a time when the government was preparing this legislation. These laws were ultimately used to negotiate and approve a 40-year extension.<\/p>\n During earnings calls in February 2025, TLC chief financial officer Adam Newman answered a question seeking an update about the licence by saying that his team \u201chave conversations with governments over time\u201d that were \u201ccommercially sensitive in nature\u201d.<\/p>\n He flagged TLC intended to use finances to employ its strategy, which included \u201clicence enhancements\u201d.<\/p>\n TLC did not directly answer when asked by The Age if it had discussed the licence extension before the laws were passed, whether it had advised the government on the laws and whether this was appropriate.<\/p>\n \u201cThe extension will allow TLC to continue to responsibly deliver our national portfolio of trusted and popular games to Victorians, support and invest in more than 800 largely small business lottery retailers and continue generating significant lottery duty revenue to fund state and community services,\u201d a spokesperson said.<\/p>\n An Allan government spokesperson said the extension delivered Victoria the \u201chighest value lottery licence return in the nation\u2019s history\u201d.<\/p>\n \u201cThe extension of the licence was independently overseen and puts us in line with New South Wales and South Australia.\u201d<\/p>\n Opposition leader Jess Wilson said the auditor-general probe confirmed there were questions to answer about the deal.<\/p>\n \u201cIn a desperate attempt to keep net debt under $200 billion, Labor has extended Victoria\u2019s lottery licence without any proper transparency and in a way that has failed to maximise value for Victorians,\u201d she said.<\/p>\n Alliance for Gambling Reform chief advocate Tim Costello said the decision to grant a 40-year extension had the \u201csmell of a terminal government\u201d.<\/p>\n \u201cWe had to find out from the stock exchange; it doesn\u2019t get more cowardly and lacking transparency than that,\u201d he said.<\/p>\n Costello welcomed the auditor-general\u2019s investigation and said the agreement had made it difficult to trust the government.<\/p>\n Greens leader Ellen Sandell said the deal \u201csmells fishy\u201d and Victorians knew it.<\/p>\n \u201cWe should be taxing big gambling corporations and reining in predatory pokies, not giving them special deals,\u201d she said.<\/p>\n Defending the 40-year extension, the Department of Justice said it brings Victoria in line with New South Wales, Queensland and South Australia, which all have licences that expire past 2050.<\/p>\n They said the decision to negotiate with TLC was made after a comprehensive assessment of the public lotteries market, including a \u201cmarket sounding\u201d of potential interest from domestic and international participants, overseen by an independent probity advisor and the government\u2019s Independent Review Panel. <\/p>\n Related Article \u201cThis extension was independently overseen and it has delivered the best return of a licence extension ever in Australian history,\u201d a spokesperson said.<\/p>\n \u201cThe money received from the public lottery licence is invested in Victoria\u2019s Hospitals and Charities Fund, which supports vital health services and facilities.\u201c<\/p>\n The Lottery Office, one of TLC\u2019s only competitors in Australia, repeated comments it made earlier this month when asked if it was part of this market sounding.<\/p>\n \u201cTo our knowledge, no other operator was invited to engage in or bid for the Victorian licence,\u201d a spokesperson said.<\/p>\n \u201cWe believe arrangements of this scale should be subject to a transparent, competitive process – a single licence model is not necessary.\u201d<\/p>\n Taxes on lotteries will bring $632 million into Victoria next financial year and increase to $736 million by 2029-30.<\/p>\n Get the day\u2019s breaking news, entertainment ideas and a long read to enjoy. 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The lottery licence deal was unveiled on budget day.<\/p>\n![\"The](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/05\/1777968370_660_9918db3ef6eebc6651f002c88a423b5b71fcbd33.jpeg\")
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Victorian Premier Jacinta Allan and her Treasurer Jaclyn Symes on budget day.Jason South<\/p>\n![\"Premier](\"https:\/\/www.newsbeep.com\/au\/wp-content\/uploads\/2026\/05\/482d6a111f53d8fcd9a1e04571ea16fed885fe3b.jpeg\")
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