Shame on Sunrise on the Seven Network for promoting Lottoland versus small business newsagents

On the Sunrise breakfast TV program yesterday the hosts crossed to the CEO of Lottoland, Luke Brill, who was standing outside a newsagency, for a story (an advertisement really) about the US Powerball jackpot Lottoland was promoting.

Shame on everyone involved in the Seven West Media Sunrise program for this segment, especially the decision to have the Lottoland CEO outside a newsagency. What were they thinking?

Surely, someone in the production team on Sunrise would have thought hang on, we are part of Seven West Media, we produce shows that are featured in magazines that we rely on newsagents to promote and sell … oh and worse still through our Pacific Magazine subsidiary we publish New Idea, Better Homes and Gardens and other top selling magazines that we rely on newsagents to promote. Why are we joining in attacking and mocking them with this Lottoland segment?

If someone did think that and did comment on it, they were not listened to. Instead, what went to air was a continuation of the attack on our local family owned tax paying small businesses. Shame on everyone involved at Sunrise.

In case you missed it, here is the story that aired:

This story is an attack on small business as well as an attack on Australian taxpayers. It comes on the back of a relentless TV ad campaign by Lottoland that mocks small business newsagents.

1. Lottoland is a company registered in Gibraltar, where they pay no income tax on money earned from overseas.
2. Lottoland pays no local taxes like Tatts pays. $1 spent on Lottoland does not deliver the same benefit for the local economy that $1 spent with Tatts delivers. Reports indicate in Victoria alone the cost is at least $90M over three years.
3. It has its gaming licenced through the government of the Northern Territory.
4. Lottoland purchases have been banned in South Australia.
5. New WA Premier Mark McGowan has said publicly he favours the SA model.

I am shocked someone in the production side of the Sunrise show did not question the story, especially the placement outside a newsagency. I am equally shocked the hosts did not bring more balance to their story.

The folks at Sunrise were happy to talk up the US$800M+ prize value and while they did explain a Lottoland ticket is a bet on the numbers drawn, there was no clarity around what a winner would actually receive. My reading of the 14,483 words under the terms section on the Lottoland website indicate that the US$800M+ would never be paid in full as they would apply the US model. In the US the IRS takes a percentage for tax. However, Lottoland pays no tax so I am not sure of the basis on which Lottoland would claw this amount from the win.

I think there are ethical and social responsibility questions for politicians to answer about Lottoland. This company is ripping millions of dollars out of Australian wallets for which there is little or no community contribution. They are doing it at a cost to local family run newsagencies – that employ locally, pay Australian taxes and support the local community.

Politicians who care about the local community and about small business should want to stop this bleed.

Lottoland think they can win the community engagement challenge with a million dollar deal to name a sports stadium. We are stupid if we let their spend at Manly pay off.

Oh, and all through this, the genius folks at Tatts have remained silent. They have allowed the Lottoland attack on small business newsagents continue. Indeed, some Tatts in-store collateral appears to have been inspired by the Lottoland ads. Totally ignorant or dumb or both. It’s Tatts, who knows?

I don’t have lotteries in my businesses so none of this affects me at the register. However, I have business relationships and friendships with newsagents who are affected, every day. That a TV show that positions itself as a show for Aussies has participated in this is gutting for them.

What should Sunrise do? They should be clear about what Lottoland is. they should trace $100 spent on lotteries at a local newsagency and compare that to the same spend on Lottoland. They should talk about the role local newsagents play. They should engage in robust and transparent debate about Lottoland versus local lottery products. The should ask politicians why they are not acting. They should look at their processes to work how how this screw up occurred. they should apologise to small business newsagents and all who work in them. They should ask Tatts why the have been silent through all this.

What should newsagent do? Write your local politician along these lines: My family runs a small newsagency business serving our community. We employ locals. We pay taxes. What do you intend to do about the Gibraltar based online gambling business Lottoland that is attacking us, taking revenue from us and not contributing to the local economy like we do?

Consider a Facebook post: The Sunrise TV show this week ran a story about Lottoland and their $800M+ jackpot. They filmed this outside a family run newsagency. Lottoland competes with newsagents. We pay Australian taxes. They don’t. One you win first division with us, you get the total prize. With Lottoland you don’t When we sell you a lottery ticket it is a ticket in a lottery. Lottoland sells you a bet, not a ticket. If you want to support your local economy, local jobs, better roads and better schools, support local newsagent lottery outlets and not Lottoland. Oh, and tell Sunrise to stop promoting Lottoland.