The Lottery Corporation (TLC) investor relations material

Strategic foundations and licence security

• Long-duration licences, including a 40-year Victorian extension, increase the weighted average licence life to 34 years for lotteries and 23 years for Keno, materially de-risking the business and supporting stable cash flows.

• Trusted national brands with over 90% awareness and a scaled distribution network of ~7,100 outlets underpin mass participation and are difficult to replicate.

• High-margin, capital-light business model generates strong free cash flow, supporting targeted reinvestment and a revised 80–100% NPATA payout policy from FY27.

• Regulatory tailwinds and policy reforms support licensed, compliant operators, reinforcing market position and future growth.

• Operating model restructured into three verticals for sharper accountability and faster decision-making.

Growth strategy and business model transformation

• Strategy focuses on product renewal, digital experience uplift, and leveraging data and AI for growth, aiming to broaden participation and drive margin expansion.

• Three business pillars: strengthen domestic market, lead in digital entertainment, and build a high-performance enterprise, each with clear ownership and accountability.

• Growth will be pursued only where licences, brands, and data provide a sustainable edge.

• Retail is repositioned from reach to value, with initiatives to convert ~4m unregistered retail customers into registered, higher-value relationships through digital touchpoints and incentives.

• Digital becomes a standalone growth engine from FY27, targeting younger cohorts and aiming to increase digital penetration, with each 1% lift in digital share adding ~$6m in EBITDA.

Lottery, digital, and Keno business transformation

• Lottery: Product and portfolio renewal targets younger adults with new formats, leveraging retail scale for customer acquisition and registration.

• Digital: App-driven transformation delivers personalised, social, and recurring play experiences, with AI-powered product development and operational leverage.

• Keno: Modernisation around licensed venues, new technology platform, BYOD, and simplified product set to drive known customer growth and venue productivity.

• Retail channel evolving from distribution to customer acquisition engine, aiming to convert anonymous play into registered customers.

• Set for Life game changes launching in September, targeting younger audiences with new prize structures.