Lottoland Australia proposes profit-sharing deal to newsagents

Lottoland’s Australian business has put forward a profit-sharing proposal to news and lottery agents in the country as it seeks to combat a potential ban on lottery betting.

Last week, the federal government announced plans to introduce the ban in response to a long-term campaign from newsagents, pubs and clubs concerned at losing lottery ticket sales.

However, Luke Brill, chief executive of Lottoland Australia, said that the potential ban would not help newsagents as it would manifest Tatts’ monopoly through its parent company, Tabcorp.

As such, Lottoland Australia has proposed a model where newsagents would receive 20% of profits generated from every bet on overseas lotteries that they refer to Lottoland Australia.

Brill said that this could be worth thousands of additional dollars a month to individual newsagents.

“We want to partner with newsagents to provide our customers with greater choice, in a way that will be fair and profitable for your business,” Brill said in an open letter to newsagents, published across national newspapers.

“Last year, in discussions with the association that represents newsagents, we made an offer to share our revenue from secondary lottery betting with newsagents.

“That offer not only stands but I am prepared to improve it; we will offer newsagents a 20% commission on the profits from every bet they refer to Lottoland.”

Bill added: “Lottoland does not offer bets on Australian lotteries but only on overseas lotteries, which means we do not compete directly with newsagents.

“The challenging times faced by many newsagents relates in part to technology and in part to the way Tatts continues to push the digital sale of its products on their own website, taking revenue away from the newsagents.”

Related article: Australia to ban lottery bets
Surprise doubters on Australia’s secondary lottery ban (paywall)