Over the weekend, the government announced the Greek company had abandoned its contract. Intralot is suing the state in an attempt to regain losses and damages.

Intralot had racked up $63 million in losses since 2008, when it began a 10-year contract to sell scratchies and daily keno in Victoria. But it is still contracted until 2027 to provide electronic monitoring of all pokie machines in Victoria, excluding those at Crown Resorts' Melbourne casino.

Intralot recorded revenue of $51.9 million from scratchies and daily keno in the year ended June 30.

The state government has approved a variation to Tatts' lotteries licence to sell the expanded product range.

"These products are highly complementary with our existing portfolio of lottery games in Victoria, which include the ever popular Tattslotto, Powerball and Oz Lotto," Tatts chief executive Robbie Cooke said in a statement.

Tatts operates lotto in every state except Western Australia. It has also been selling instant scratchies in all states and territories except WA and Victoria.

"This announcement provides 760 plus retail partners in Victoria with an exciting opportunity to join Tatts in selling the same popular range of instants we offer in [those states and territories]," Mr Cooke said.

Tatts said it has agreed to purchase assets from Intralot and has secured licenses over some intellectual property rigthts and software. The new arrangements are expected to come online in February 2015.

The company said the new licence arrangements will continue for the term of Tatts' current Victoria agreement, and will add to earnings immediately.

The transaction is subject to an investigation by the Australian Competition and Consumer Commission.