Government to sell off South Australian lotteries

"It's a point of principle... it's better for a state government to be a regulator of the gambling industry rather than an operator," he told journalists on Thursday. "It's an economic decision and a moral decision...it's the right thing to do by South Australian tax payers."

The move will see the SA lotteries brand remain government owned, with the business operations licensed to the private sector.

"The SA Lotteries organisation needs to be free of government control so they can meet the ongoing challenges caused by increasing competition and that can best be done with a private operator taking over," Snelling said.

Snelling would not disclose how much money would be generated from the licensing but said a reserve price had been set. He said the government would work with agencies who relied on SA lotteries to make sure the transition did not adversely affect them.

"Contracts for all agencies will be re-set to five years from the date of any transfer to a private operator... current commissions will be maintained," he said. He pointed that the government would continue to collect gambling taxes that made up 75 % of the revenue collected from SA lotteries.