THE online lotteries provider is testing the wisdom that if you can make it in New York you can make it anywhere, inking a joint venture deal yesterday with a mob called Retail Gaming Solutions.
The JV, Lotto Points Plus, will help existing physical lottery retailers boost sales with Jumbo's online technology and RGS's in-store and affinity program expertise. The move is part of Jumbo's "multi-jurisdictional" push to tap the $250 billion global lottery sector, a far deeper pool than the $4bn domestic sector.
The US market turns over $60bn a year, with this week's Powerball jackpot jackpotting to $550m.
Jumbo has been a slow-burn yarn since selling its first lottery ticket here in 2000, but has gained traction on the back of its online tie-up with Tatt's Group. Last year it recorded a 39 per cent earnings jump to $6.7m (earnings per share of 16.7c) on revenue of $24m.
The anti-gambling brigade would bristle at concepts such as "enhancing lotteries through the use of social media". But that's where Jumbo sees the future and the more global its revenues, the less risk it has of falling foul of gaming curtailment measures.
Despite a 60 per cent surge since late September, Jumbo shares still look reasonably valued. As to whether Jumbo realise its elephantine global potential, it's now up to you New York, New York. Spec buy.
JIN Price at posting:
$2.10 Sentiment: LT Buy Disclosure: Held
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