The New South Wales Upper House passed legislation this week allowing the Rees government to privatise its state-owned lottery corporation.

NSW Lotteries generates hundreds of millions in profits each year but it's now set to be taken over by the private sector.

The Coalition decided to support the privatisation after the government agreed to extend special protection for Newsagents, who rely on revenue from the sale of Lotto and scratchie tickets.

But the Greens oppose the legislation saying it will cause more problems for gamblers and young people.

2SER’s Rosie Lewis reports.