The US and Europe may be in the deepest recession since the 1930s, but the State Government will still pursue the sale of NSW Lotteries by year's end in the hope it will raise well in excess of $500 million.

The money will help stem the yawning deficit expected in the 2009-10 budget, which is now being compiled.

Other assets to be sold include electricity retailers such as Integral Energy and EnergyAustralia, output rights from electricity generators, the state super administration business Pillar, WSN Environmental and the Roads and Transport Authority's non-standard numberplates business.

NSW Lotteries pays the Government more than $350 million a year in duties, dividends and taxes. In 2007-08, it received $305.85 million in duties, and another $55.57 million in dividends and income tax payments. Following any sale, the Government said, it will still receive the $300 million a year in royalties but will lose the annual dividend and tax receipts.

The global financial downturn has affected likely demand and prices to be bid but the Government said it is confident interest will be strong.

The lotteries are to be sold under a 30-year licence, after which time ownership will revert to the Government. The Keno licence is not included in the sale. In Queensland, the licence period runs for 65 years and in other states, for 10 years.

"We think we've got the balance right," said the Treasurer, Eric Roozendaal. "The duties will be protected, whoever the operator is."

Sales of lottery tickets have been stagnant for years, with growing sales of instant scratchies, and most recently, pools tickets.

"It is a very good business that could be substantially improved by the private sector. We believe that we can obtain real value for the taxpayers of NSW by issuing an exclusive licence for 30 years," Mr Roozendaal said. The NSW Opposition said it supports the sale, but this is the wrong time to be pursuing a deal.

"Any sale that is considered at this time must be questioned," said the Opposition treasury spokesman, Mike Baird. "We do not support [the sale] at any price." The Greens raised concern about lotteries being available in supermarkets after a sale..