Tatts Group has taken a 15% stake in Jumbo Interactive, the operator of OzLotteries, it was announced today. This has happened as tatts has extended its commercial relationship with Jumbo for online sales of Tatts products. The expanded relationship includes more tatts products being available on the OzLotteries platform.
Newsagents wondering about the plans of Tatts for online should read today’s announcement as strong statement from Tatts about online.
The announcement details what the share acquisition revenue will be used for. It includes:
expansion opportunities identified by Jumbo such as approaches to accelerate the growing charity lottery business.
The expanding charity lottery business is certainly interesting. Its represents another example of disruption challenging the single focus lottery retailer, such as many newsagency businesses.
Also in the release is this about Jumbo:
In 2000, Jumbo sold its first lottery ticket on the internet and witnessed a dramatic rise in popularity due to the convenience of buying tickets online. At first customers were attracted to the security of never losing a ticket and the convenience of automatic number checking, prize payments and auto-play. In 2012, Jumbo released a lottery app for the iPhone and a new transition began driven by the convenience of mobile lotteries. A new app for the Apple watch takes the customer experience a step further with prize alerts, winning numbers and ticket management now available on the wrist.
Yes, lottery product engagement on the Apple watch. #retailersnotneeded
Mainly just Tatts shareblocking Lottoland who was sniffing around for a takeover. The new reseller agreement and a 15% shareholding with possible option for another 5%, puts it out of Lottoland’s reach. It isn’t like Tatts is really getting any new customers from the investment, as they are already customers by proxy. The capital injection could help with promotions for overseas customers, eating into Lottoland’s customer base.
Pat Jumbo does have some interesting activity that would be net new for Tatts.