Tatts Group (TTS) operate lotteries throughout Australia including popular games such as OzLotto and Powerball

Tatts Group (TTS) operate lotteries throughout Australia including popular games such as OzLotto and Powerball. Regulation within the industry makes it a highly lucrative business to incumbent operators such as Tatts. In an industry characterized by high barriers to entry, Tatts are largely unencumbered by competitive pressure allowing for sustainable profits to be drawn over the longer term. The scale of Tatts' distribution network and sizable prize pool further guard profitability from new entrants. Unlike typical monopoly industries, government intervention is relatively low and we see limited regulatory risk. We believe the business has potential to further grow earnings through implementation of a new direct online sales model, which should provide for higher margin sales and access to new markets. We hold Tatts in Perpetual's Industrial Share, Australian Share, Concentrated Equity, Share-Plus, Geared Australian Share and Pure Equity Alpha Funds. Our full article is available here: (VIEW LINK)