Lottoland ban will “cement Tatts’ monopoly” according to Aus newsagents
Operator and Australian newsagents form an unlikely alliance in a bid to resist the federal lottery betting ban
A newsagent trade group in Australia has criticised the federal government’s plan to ban lottery betting in the country over fears it will increase a monopoly for Tabcorp’s Tatts Group.
The Newsagents Association of NSW and ACT (TNA) hit out at the proposed ban on online lottery betting arguing the suggested legislation had gone too far.
In a note to members, the association said the bill would have the “unintended consequence” of cementing a monopoly for Tatts Group as competitors like Lottoland would be banned under the new regulations.
Tatts Group joined with independent newsagents to front a A$5m campaign to oust Lottoland from Australia on the basis that lottery betting stripped small businesses of vital income.
But according to the Sydney Morning Herald, TNA has now accused Tatts of imposing onerous administration requirements and interfering with the way news agencies conduct their operations.
The trade group also suggested that Tatts’ push into online lottery sales following its merger with Tabcorp has led to a loss of income for the newsagents and lottery franchisees it was supposed to be protecting.
“In their most recent financial reports, Tatts Group reported an increase in online sales to 16.5 per cent of all their lotteries product sales,” said TNA CEO Ian Booth.
“Overall sales have not increased by the same amount, so Tatts Group Lotteries’ gain must be at the expense of small businesses such as newsagents.”
Booth has argued the federal government’s bill should be postponed until the “consequences of creating a lotteries monopoly are resolved”.
He also revealed that a suspension which prevents lotteries extending into large supermarket chains will cease in the next three days in yet another hit to small businesses.
“Tatts Group has stated should they receive an application from a large chain supermarket that they will consider that application on its merits,” Booth told 4BC News.
“They have made it clear that the small businesses they have relied upon for all of their life, they are prepared to sacrifice them to suit their own commercial outcomes.”
He added: “We are not a supporter of Lottoland and we are not on anyone’s payroll here, but if there is a system that addresses concerns that have led to the introduction of this bill then let’s explore those, because there may in fact be solutions which are equitable.”
Lottoland Australia CEO Luke Brill described the proposed bill as “misguided and unnecessary” when it was announced on Tuesday.
In a new statement from the firm, Brill said: “If the proposed legislation is passed, we fear it will have a serious impact on the future viability of many newsagents, as it will create a lotteries monopoly across Australia for Tatts Group.
“This has been highlighted recently by the Newsagents Association of NSW and ACT, whose members are concerned about the market power that will be placed in the hands of one group at the likely expense of individual newsagents.
“As a responsible and responsive corporate citizen that contributes extensively to local and community groups, we will continue to work closely with regulators and all political parties to reach a satisfactory outcome in the best interest of our more than 650,000 registered customers,” he added.