Online lottery provider Jumbo Interactive, listed in Sydney, has signed a definitive agreement with Lotterywest, the state government-owned lottery operator of Western Australia.
Jumbo subsidiary TMS Global Services has now concluded the signing of a ten-year deal to offer its online platform and services to the lottery following the signing of a binding term sheet in late September.
The initial three-year deal would allow players to buy online lottery tickets via the gaming system of Lotterywest, with the option of extending the agreement for up to an additional seven years.
For any consumer purchase made via its white label network, Jumbo will earn a 9.5 percent service charge as part of the arrangement.
Lotterywest will oversee the marketing campaign for matches, while on behalf of Lotterywest, Jumbo will handle customer service on the white label site. As decided with Lotterywest, Jumbo would be able to sell to new or current clients only.
Lotterywest has 12 months from the go-live date, which is currently scheduled for late December, the option to move white label players to the Lotterywest website and app.
Jumbo CEO Mike Veverka said: “I am pleased that the Lotterywest agreement has now been signed on time and on terms as anticipated. “This is a major achievement for Jumbo securing our first government client setting up a solid long-term partnership and providing strategic opportunities for Jumbo.”
Jumbo Interactive Limited (ASX:JIL) shares closed up 8.27 percent in Sydney on Friday at AUD$13.87 per share.