Jumbo Interactive Ltd (ASX: JIN)Share Price and News

About Jumbo Interactive

Jumbo Interactive is a leading digital lottery company based in Brisbane, Australia. The company specialises in providing proprietary lottery software platforms and lottery management expertise to the charity and government lottery sectors, both domestically and internationally.

Jumbo Interactive's Company History

Jumbo Interactive was established in 1995 by Mike Veverka as a software developer and internet service provider in Queensland, Australia. In 1999, the company was listed on the Australian Stock Exchange.

The passage of the Interactive Gambling Act by the Australian Parliament in 2001 (and having a major client as an online lotteries provider, allowing Veverka to see the growth in online lotteries firsthand) prompted Jumbo to shift its focus to internet lotteries, starting with smaller state-based charity lotteries.

In 2005, the company acquired TMS Global Services, which operated a lottery network since 1984 in various Pacific nations under agreements with Tattersalls. This acquisition marked Jumbo's transition to national lottery games. In 2007, Jumbo acquired Manaccom, a software publisher, further solidifying its focus on internet-based services.

The development of the Oz Lotteries website, which has served over 1.5 million customers, became a cornerstone of the company's operations. In 2019, Jumbo expanded internationally by acquiring the UK lottery manager Gatherwell Limited. Further expansion occurred in 2022 with the acquisition of the UK-based external lottery manager and digital payments business, StarVale Group.

Fast forward to 2025 and Jumbo has over 2 million players from Australia and abroad.

Future Outlook of Jumbo Interactive (ASX: JIN)

Jumbo Interactive has built a solid foundation in the digital lottery sector and continues to grow through both organic and acquisitive strategies.

Its future prospects are tied closely to the continued shift from physical to digital lottery channels, a transition that remains underway globally. With only 36% of lotteries having gone digital, there is more opportunity for Jumbo to capture at home and abroad.

The company's core business, Oz Lotteries, remains a robust revenue generator, benefiting from strong recurring demand for lottery services and high customer engagement via mobile and web platforms.

A significant challenge that Jumbo Interactive has endured, even prior to the pandemic, has been compressed margins and subsequent investor reaction to the shock. The reason for this is increased business development, merchant and marketing costs for its SaaS business, and the lack of revenue from the SaaS business to make up for the increased costs. Acquisitions of Gatherwell in the UK and Stride in Canada also have taken longer to reap revenues than expected.

But Gatherwell and StarVale have begun to significantly to revenue, with the company aiming to replicate its successful domestic model abroad. Management has also flagged opportunities in North America and Europe, particularly in the not-for-profit sector, which is increasingly turning to digital raffles and draws for fundraising.

Is Jumbo a Good Stock to Buy?

Overall, the outlook is favourable. Investors can expect sustainable growth backed by strong fundamentals, recurring revenue, and a scalable SaaS model that offers both operating leverage and diversification.

The transition to international markets introduces some execution and regulatory risks, particularly in newer jurisdictions. And this is on top of the same challenges in Australia.

There has also arguably been concern about its exposure to gambling, a no-go zone for ESG investors. However, it has increasing exposure to charities and causes that run lotteries. And furthermore, it has not got exposure to ‘pokies’, it is exposed to government-run lotteries.

The consensus 12-month price target hovers around AU$13.67. For long-term investors seeking a tech-enabled business with reliable income and global expansion potential, JIN offers a compelling opportunity.