The Lottery Corporation (TLC) half year results for the period ending 31 December 2025 reveal a business model that is becoming increasingly sophisticated in its use of digital integration and pricing levers. While the company reports good underlying performance, lottery retailers should look beyond the numbers to understand how TLC’s shifting priorities may impact them.
The digital shift
The most critical trend I see for physical storefronts is the continued migration of business to digital channels. Digital, direct to consumer, is clearly the preferred model for TLC.
Digital share of Lotteries turnover has risen to 41.2 percent, an 80 basis point increase despite a low jackpot environment.
TLC’s stated priority for 2026 is to accelerate its evolution as a digital entertainment company.
Retailers should be wary that as TLC embeds digital across the enterprise, the role of the physical store may shift in the company’s strategic hierarchy. That’s what some might say. I think the evidence is there in the results. Retailers are there today to support TLC in its direct top consumer model. In other words, what was an in-store first model is clearly an online first model, supported by in-store branding and service (when needed).
The company is focusing on creating seamless and contemporary experiences for customers, which prioritises the convenience of online platforms.
The jackpot performance gap
The reports confirm that this half was the least favourable half for jackpot outcomes since the demerger.
Powerball and Oz Lotto volumes were heavily impacted by a 14.2 percent drop in cumulative jackpot value compared to the prior corresponding period.
The results report that active customer reductions are skewed toward lower-spending patrons who are sensitive to large jackpot offers. This impacts lottery efficiency for you.
Concerns
Watch for potential customer fatigue; while retention has been high so far, there is a risk that repeated price hikes across the portfolio may eventually alienate price-sensitive local segments.
The shift is how payouts may be handled strengthens the connection with direct to consumer at possible cost to the retail relationship you have.
Brand architecture review: TLC plans to review its brand architecture and positioning. This often leads to requirements for retailers to update in-store signage or point of sale materials to remain compliant with new corporate identities.
Organisation simplification: The goal to simplify and better align the organisation structure may change how retailers interact with corporate support or territory managers.
Opinion – advice.
Don’t rely on lottery revenue to keep your business afloat. Be sure to nurture other valuable reasons for people to visit your shop. Do what you must to keep TLC happy while you do more for your own business and its own, local, identity.
TLC does not serve you, nor do they need you. You should not need them.
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Mark Fletcher founded newsagency software company Tower Systems and is the CEO of newsXpress, a marketing group serving innovative newsagents who continuously evolve their businesses to be enjoyable, relevant and successful. You can reach him on mark@newsxpress.com.au or 0418 321 338.