What smart money is saying about The Lottery Corporation

Position history

Between Q2 2026 and Q3 2026, 2 fund letters reported a position in The Lottery Corporation — 2 opened or added to the position.

Fund activity · 2 positions · 2 moves

• AddedL1 Capital Catalyst Fund

  September 2026

  “The Lottery Corporation (ASX:TLC) is Australia’s leading lotteries and Keno operator, with long-dated licences, national distribution and some of the country’s most recognised gaming brands. The company operates Powerball, Oz Lotto, Saturday Lotto, Weekday Windfall, Set for Life, Lucky Lotteries, Instant Scratch-Its and Keno across retail, digital and licensed venue channels. The business reports across two operating segments: • Lotteries (85% of EBITDA): the core earnings engine, supported by exclusive state-based licences, national pooling, trusted brands, large jackpot liquidity and a scaled retail / digital footprint. • Keno (15% of EBITDA): a licensed, venue-led social play business with growth opportunities from terminal upgrades, cashless payments, platform refresh and increased customer registration. TLC’s share price has de-rated from its 2025 highs (refer Figure 3 below). In our view, this de-rating reflects a combination of the following key factors: • Higher bond yields: Rising long-term bond yields, with the U.S. 10-Year Treasury yield increasing from 4.5% to 5.3% over the quarter, have weighed on higher-quality, defensive and infrastructure-like equities which are predominantly owned for the yield income they generate. • Weak jackpot outcomes: FY26 was impacted by an unusually weak jackpot sequence, with jackpot-game outcomes estimated to be a 1-in-45-year event. This reduced both revenue and earnings and created investor concern that game mechanics may need to be refreshed. • Licence renewal impacts: The Victorian licence extension is strategically positive, extending TLC’s position in Victoria to 2068. However, the upfront licence cost, higher near-term leverage and increased licence amortisation have weighed on short-term earnings optics and valuation multiples. • Index-related positioning: The share price has also been influenced by selling in anticipation of potential MSCI Index- related changes that could see some forced selling of TLC shares. We believe most of the factors above are temporary headwinds, rather than changes to the underlying quality of the business. Accordingly, the de-rating has created an opportunity for the Catalyst Fund to acquire a high-quality, cash-generative business with a growing earnings profile at an attractive valuation, with several medium-term catalysts for earnings recovery.”

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  The Lottery Corporation
• New positionCooper Investors Australian Equities Fund

  June 2026

  “During the quarter, we initiated a position in the Lottery Corp (TLC).”

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  The Lottery Corporation