Exceptional Pricing Power Should Underpin Revenue Rebound for Lottery Corporation in H2 Fiscal 2026

The Lottery Corporation should continue to dominate the Australian lottery landscape. Regulation limits competition through compulsory licensing, thereby bestowing on The Lottery Corporation a near-monopoly over long-dated licenses in all Australian states and territories except Western Australia. The only significant license set to expire before 2050 is the Victorian lottery license, which expires in 2028. Competition for the Victorian license at renewal is likely, and we anticipate a good chance that Victoria would grant a second lottery license. Still, this risk is immaterial to our fair value estimate. We do not expect any significant regulatory changes, given the government and community's dependence on The Lottery Corporation's revenue.