Issue No. 28: The Lottery Corporation ($TLC.AX)
A Collection of Lottery Monopolies in a Country Hooked on Punting
Death, taxes, and lotteries… or something like that.
Lotteries have been around since at least 200 BC, when the Chinese Han Dynasty used a crude ticket system to help finance the Great Wall. They’ve been found in almost every society in Europe since the time of the Roman Empire. The oldest continuous lottery is the Dutch state-owned Staatsloterij, which is almost 300 years old. Talk about durability.
The premise is alluring to would be entrants and to those holding the lottery. The participant gets the thrill of outlaying a small amount of money for the chance to collect an enormous windfall. The host of the lottery gets to make a spread on the prizes promised and the receipts collected. Some of us get the distinction of being on both sides of transaction.
Lotteries have been a way for governments to raise revenue for the last several hundred years. This remains the case to this day. They have survived wars, famines, upheavals, and even the internet. Many interests are aligned in the carnival-like manner in which they are held. They also have the benefit of not being associated with, or being the cause of, gambling addiction (think poker machines or online gambling).
Australia’s Love Affair with Gambling
Australia has the dubious distinction of spending the most dollars per capita on gambling of any country on this planet. Surveying suggests that the average Australian spends close to 1000 USD on gambling related activities per year. This is more than the next 5 countries combined.
Culturally, there is a long history of on-course bookmaking at the races (horse racing), poker machines being available at most pubs (local hospitality venues where a bloke can get a beer, a feed, and take a punt - I won’t be translating that for the Americans amongst us), Leagues Clubs (Rugby League Clubs), and RSL Clubs (Returned Services Clubs). Every State in the Country has 1 or more licensed Casinos (regularly embroiled in a variety of scandals), even my home town is colloquially known as Brisvegas - despite having virtually no similarities with its name sake. There’s even a uniquely Australian gambling past time called Two-Up, which is played exclusively on ANZAC Day (the Second World War memorial holiday), to which most unlicensed premises are allowed to play host. Late night television is pervaded by sports betting advertising. To be Australian is to have a go, and there’s nothing more like having a go than having a punt.
The logical, and even psychological, reason for the sheer scale of gambling down under is simply it’s availability. It is everywhere, it is advertised everywhere, and even now it is conceived of as quintessentially Australian. For all the good it has done us as a nation - that is to say a very narrow collection of interests who have accumulated significant fortunes facilitating it. This brings me to the lotteries.
The ‘Lott’
Gambling is regulated by the States (provincial), as opposed to the Commonwealth (federal). This means that every State government has it’s own concession or licensed lottery operation. For example, Queensland (my home state) is home to the Golden Casket, which was first drawn in 1917 to help aid returning veterans of the First World War.
Most State lotteries remained regionally operated until the late 2000s. Queensland’s Golden Casket remained government owned until 2007, NSW (New South Wales) Lotteries remained much the same until 2010, with South Australian Lotteries relinquishing their State-run operation in 2012. In each case Tatts Group secured a multi-decade licence to operate each State’s lottery. Tatts was formed in the early 1890s by the semi-legendary George Adams. Adams moved to Hobart (the Capital City of Tasmania) and began the first lottery operation in 1891 at the behest of the Tasmanian government. Over time they secured the same rights in Victoria, as well as the Northern Territory. By 2012 they controlled virtually every State with the notable exception of Western Australia. The reasons for this are oblique, but suffice to say that WA maintains a uniquely independent cultural identity quite separate from the rest of the country.
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