In September, Jumbo’s TMS Global Services subsidiary and Lotterywest signed a contract for a partnership in the lottery industry. As part of the agreement, Jumbo will provide a white label platform to Lotterywest and receive a 9.5% service fee for processing customer transactions through its technology. Jumbo will also handle customer support while Lotterywest will manage marketing. The initial contract will have a duration of three years with the option for extensions up to ten years. Previously, Jumbo offered its reseller services to Western Australia customers through its Oz Lotteries portal, but this new agreement ensures that lottery sales returns go directly to Lotterywest.
The partnership involves migrating Oz Lotteries players to the new white label site, with the option for Lotterywest to transfer these customers to its own site within a year. The go-live date is set for December of this year.
Jumbo’s CEO, Mike Veverka, expressed satisfaction with the signed agreement, stating that it is a significant achievement for Jumbo and establishes a strong long-term partnership with a government client.
Jumbo’s services will continue to be available in other Australian states through a separate agreement with Tabcorp, which was signed in August of this year. This agreement allows Jumbo to resell lottery tickets in several states and international jurisdictions.
In another development, Jumbo’s acquisition of Gatherwell, a British external lottery manager, in November 2019 has resulted in a £1m earn-out payment. Gatherwell operates lotteries on behalf of local authorities and charitable organizations to raise funds for good causes. The acquisition included an initial payment of £3m and the potential for an additional £2m earn-out, with the first £1m being triggered based on meeting revenue and profit targets for the year ended June 2020. A potential further £1m may be paid based on meeting targets for the year ending June 2021.
Gatherwell runs various social lotteries, such as Your School Lottery for raising funds for schools, and regional lotteries for supporting local causes in Buckinghamshire and Bournemouth, Christchurch, and Poole through the BH Coastal Lottery.
