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Are Lottoland on the verge of an Australian lifeline?

The Newsagents Association of NSW and ACT (NANA) has announced that it is considering a profit sharing agreement from Lottoland, which has been previously dismissed by the Australian Lottery and Newsagents Association (ALNA).

In a move that would see newsagents receive a 20% share of profits from overseas bets, when they refer customers to the site, Lottoland aims to strike a deal as it faces being banned from the country.

Releasing its statement, NANA explained: “NANA is considering that offer.  It is substantially higher than previous offers made to ALNA and to Newsagents in the media.  

“The offer is based on a percentage of sales value, not profit.  The percentage rate is higher than the percentages newsagents and other lotteries outlets receive in commissions from Tatts Group Lotteries for their lotteries products.

“Firstly, NANA is not in anyone’s pocket.

“Secondly, Newsagents have asked NANA to negotiate with Lottoland and other alternate lotteries/wagering products providers to deliver a benefit to them.  Lottoland is not the only player in this space.”

Stressing that a deal had not been agreed, the association states it is “duty bound to consider any alternative that gives newsagents a fair share,” adding: “NANA has written to the Deputy Prime Minister and Senator Fifield about the proposed amendments to the interactive gambling legislation.  

“NANA has stressed that there will be enormous consequences for Newsagents if Tatts Group Lotteries has no effective competition”

“If the identified issues concerning taxation, State government revenue, consumer education and income for Newsagents and other lotteries outlets are resolved, why shouldn’t Newsagents get an additional income stream, which balances what they are losing to alternate wagering products and to Tatts Group Lotteries’ own online sales activities.”

NANA also warned of possible consequences of the Tatts Group campaign, and the potential of a monopoly being established: “From day one of the campaign funded and conducted by Tatts Group Lotteries against alternate lotteries/wagering products, NANA has stressed that there will be enormous consequences for Newsagents if Tatts Group Lotteries has no effective competition.  

“Already, Tatts Group Lotteries has an almost monopoly position in every State and Territory except Western Australia.  If this position is reinforced by a legislated ban on alternate/wagering products, there will be nothing to prevent Tatts Group Lotteries building on their thrust into online sales.  Already their online sales represent a significant proportion of the overall sales of lotteries products.

“Monopolies are not good for small businesses. “Monopolies are not good for consumers.”

“If an agreement cannot be reached that is good for Newsagents, then nothing will change.”

The association, which represents newsagents in the state of News South Wales and Australian Capital Territory, also said it had also been asked for representation beyond those regions: “NANA has been approached to represent the interests of significant blocks of Newsagents outside of NSW and ACT.  Why? Because Newsagents are sick and tired of being used as cannon fodder by the likes of Tatts Group Lotteries and associations that act as their mouthpiece. NANA is working with those Newsagents to work out what will be best for them.

“There is a long way to go in this saga.  NANA has existed for more than 125 years and is here for the long haul.  NANA is committed to continuing to work in the best interests of its Members.  Dismissing any genuine offer from any organisation to work with Newsagents closes the gate and will potentially cost Newsagents income.

“NANA will continue to negotiate with Lottoland and other organisations for the benefit of its Members. If an agreement cannot be reached that is good for Newsagents, then nothing will change.”

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