Tatts plunges $5m into anti-Lottoland campaign as profits fall 17%

Tatts Group spent nearly A$5m last year on its campaign to try and shut down bet-on-lotto operator Lottoland, according to the Australian firm’s H2 results released today.

The wagering giant, which merged with Tabcorp in December, revealed a 16.6% drop in statutory net profit after tax (NPAT) to A$102m, as a result of the anti-Lottoland campaign, merger costs and lease expenses on its new Brisbane office.

A financial statement to investors outlined a A$4.9m expense on a “synthetic lottery public campaign” which began in September 2017 and claimed that Lottoland was drawing profits away from newsagents and that lost tax revenue would lead to a cut in public funding.

The campaign served its purpose after Lottoland was banned from taking bets on all Australian lotteries when its licensing state Northern Territory (NT) implemented new rules in November.

Despite the slide in profits, Tatts H2 revenue rose 4.3% to A$1.48bn driven by a strong run of jackpots in the operator’s lottery division where revenue also increased by 6.2% to A$1.08bn.

Tatts said the lottery business was boosted by a run of 18 jackpots at or above A$15m, compared to 15 similarly influential jackpots in the prior-corresponding-period, while digital lottery sales improved by 30%, accounting for 15.6% of total lottery sales.

The operator said A$70m has so far been spent on the Tabcorp merger, which included advisory fees and staff retention costs while full integration of the two businesses could take up to two years.