Lotteries giant Tatts Group has bought a 15 per cent stake in internet lotteries business Jumbo Interactive for $15.7 million.
Tatts has purchased 6.6 million newly issued Jumbo shares at $2.37 per share, and also has a 12-month option to acquire another 3.5 million shares at the same price, subject to Jumbo shareholder approval.
Tatts also said on Friday that reseller agreements with Jumbo for lottery sales in NSW, Victoria, South Australia, Northern Territory and Fiji have been extended for five years with potential to continue beyond 2022.
Tatts will also provide more products, including the popular "Set for Life" game.
Tatts has been offered a seat on the Jumbo board but presently does not intend to take up the offer.
"These new arrangements strengthen the long-standing commercial relationship between Tatts and Jumbo," Tatts said in a statement.
Jumbo Interactive, which is also listed on stock exchanges in Australia and Germany, operates the ozlotteries website in Australia under agreement with Tatts.
Shares in Jumbo were 10 cents, or 3.82 per cent, higher at $2.72 at 1119 AEST, after climbing as high as $2.82..
Tatts Group, which is subject to an ongoing merger proposal by rival gaming giant Tabcorp, was 1.5 cents lower at $4.365.
