From February next year, Tattersalls will be a single licence operator in Victoria.
Premier Denis Napthine said sales of gaming products went down under Intralot and the move to make Tattersalls the sole provider would benefit customers, agents and tax payers.
"We've seen the deal done with Intralot costing tax payers because sales went down significantly, there was less revenue for the tax payers," Dr Napthine said.
Lottery Retailers Association President Sharyn Cole said the change was a win for retailers.
"We've lost a lot of money, we've paid an enormous price in buying in Intralot in the first place," Ms Cole said.
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