NSW Lotteries sale signals long term losses to public purse

"Treasurer Eric Roozendaal has sold off NSW Lotteries in an attempt to manage the NSW budget shortcomings ahead of next year's election," said Ms Rhiannon.

"Given their track record we cannot trust the Tatts Group or the state government to prioritise reducing problem gambling ahead of increasing profits.

"We would have been better off holding on to NSW Lotteries as a source of revenue for future generations, instead of flogging it off.

"It's bad economic sense to sell off a public asset that makes money to fund recurring costs like wages for teachers, nurses and police.

"The government should be investing this money in capital expenditure that will reap long term benefits, like building public transport infrastructure, instead of shoring up the shortfalls in its next budget.

"The Tatts Group has made enormous profits from driving up poker machine gambling, and will no doubt want to expand the lotteries market with new games to recruit new gamblers and increase tickets sale.

"The Treasurer has given a quick boost to NSW coffers from the sale of Lotteries before protecting potential problem gamblers and young people.
 
“The Lotteries sell off will result in a shift from a soft gambling product to a more damaging product as the Tatts Group will be intent on maximising their profits.
 
“Lottery products will proliferate in supermarkets and where ever the private owner can place them.  Problem gambling will receive minimal consideration in the rush to increase lottery sales through vending machines and multiple outlets.

"The $850 million business consideration fee paid by the Tatts Group will ease the way for them to expand lotteries sales with new niche markets.

"The Tatts Group push to drive up lotteries sales will increase the conflict of interest between maximising gambling revenue and reducing problems gambling.

"The details of this deal will be buried in the contract and hidden from public behind commercial-in-confidence provisions," Ms Rhiannon said.


For more information: 0427 861 568