Victoria's $1.145 billion lotto licence extension shrouded in secrecy

According to a new auditor-general report, Victoria’s government spent almost three years crafting a secret 40-year extension of its lotto licence, culminating in a $1.145 billion payment from The Lottery Corporation. The corporation first pitched an upfront premium in November 2023, prompting Treasury to examine licence reforms that previously allowed only one-year extensions. By June 2025, legislation was passed to enable the long-term deal, which was disclosed on May 5, the day the state budget was released.

The report found no probity breaches but noted the lack of a competitive process prevented certainty that a higher premium could not have been achieved. Departmental officials defended the secrecy as necessary for value, while opposition figures criticised the opacity and the absence of a public tender. The government has accepted recommendations to improve disclosure rules for future commercial decisions.