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Tatts iPhone App to challenge retail lottery sales

The Tatts iPhone, available free from iTunes, is set to facilitate lottery product sales that would otherwise have been completed in a newsagency or some other lottery outlet.

I downloaded the App to try it out. I was surprised they are transacting by location. I am guessing their various agreements require this.  OzLotteries has no such barrier – you can by from any web enabled device anywhere in the world. The barrier aside, the app makes purchasing easy – more convenient than walking or driving to the store for a ticket.

You can get more information on the Tatts app from the iTunes store.

Newsagents facing a Tatts corporate image fit need to consider the App and online moved by tatts and their partners when budgeting for the capital investment.  While the pressure from tatts is considerable re corporate image, there is an opportunity to make a case in an appropriate forum for capital investment that respects the further opening of channels outside the traditional retail channels used for lottery products in the past.

Blindly investing in a corporate image fit without crunching the numbers and considering these mobile and online moved could lead to a bad investment.

16 likes
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  1. Bruce

    Absolutely. If Tatts are opening more outlets with fewer conditions imposed on them, the existing franchisees are disadvantaged. Any expenditure required by existing franchisees e.g. shopfits; must be carefully considered. Mark, have you any thought o what would be “an appropriate forum” ? It seems to me that in the absence of assistance coming from the ANF, there is a serious power imbalance between Tatts and contracted newsagents.

    2 likes

  2. Jill

    If we do not comply with the new corporate image, when they come with the heavy hand and threaten breach of agreement who do we have to back us?

    3 likes

  3. KMc

    So we can get fined from selling tickets to minors, but who controls an individuals smartphone. This has got injustice and unfairness written all over it

    5 likes

  4. Jarryd Moore

    KMc,

    I assume one would would need a credit card (and therefore need to be 18) to use the app.

    0 likes

  5. Jim

    Unless they use a Vcard!

    0 likes

  6. Jarryd Moore

    It will be interesting to see how and if the new federal government’s policy of unfair contract legislation extending to small business will influence the issue of corporate fitout – albeit this would likely be more in relation to the physical store networks being established.

    0 likes

  7. JMc

    Jarryd
    The credit card details only have to be entered once. After that who ever has the app store access id and password can use it and book against the recorded card details. It’s wide open for minors to use.

    0 likes

  8. KMc

    Jarryd
    The credit card details only have to be entered once. After that who ever has the app store access id and password can use it and book against the recorded card details. It’s wide open for minors to use.

    0 likes

  9. Jarryd Moore

    Jim,

    Not sure how Vcard works or how the service deals with it. Do people have to go through an identification process like ozlotteries.com.au?

    0 likes

  10. Jarryd Moore

    KMc,

    My understanding is that it isn’t really considered an issue because that person under 18 is not using their own money and would subsequently not own any ticket or winnings that resulted from it.

    0 likes

  11. Paul

    Load and Go Credit Cards don’t have an age limit on them and neither do prepaid Visa Cards. Either could be obtained by an under 18 year old and used to fund a purchase using the App and then then they are using their own money to buy the lotto ticket. The question is of course what would Tatts do in regard to honouring the result if they won a large amount of money.

    0 likes

  12. Mark Fletcher

    The age discussion is moot given the ease with which anyone can setup an account with OzLotteries.

    1 likes

  13. Brett

    The same argument exists for the intoxicated. A store is not permitted to sell lotto to any intoxicated punter, that check is not available online or on a smart phone.

    0 likes

  14. Jarryd Moore

    There is still an age verification process with OzLotteries https://www.ozlotteries.com/support#what_is_verification

    But regardless, I doubt underage people playing lotteries is a major problem given that the games are not “instant reward”.

    0 likes

  15. Mark Fletcher

    Still moot. 🙂

    1 likes

  16. Jarryd Moore

    No more moot than it is for physical retail stores.

    0 likes

  17. Lance

    What, if anything can Newsagents and small businesses do to counter this move by Tatts ?
    There are obviously many aspects of the new arrangements which will have a detrimental affect on many small businesses who don’t have the ‘clout’ to stand up to the corporations.
    You need to unite and take some form of action keeping in mind your individual personal set of circumstances and those of your business.
    Some form of action is necessary if you wish to maintain you profitability.
    Tatts are not there to help you, but you are.
    Bit of a shame that the banner associations aren’t pitching for you 🙁

    2 likes

  18. Gregg

    Unfortunately for us in NSW the current President of the NSW Liberal party works for the online gambling organisation and also a lobbyist for online gambling. Excellent interview on 7.30 Report on the ABC with John Ruddock from the NSW Liberal party who is trying to ban lobbyists from holding a position of power in political parties. For his efforts John Ruddock looks like being suspended from the party. This is an important issue as Tony Abbott has also called for a ban on lobbyists holding positions in political parties.

    1 likes

  19. heleng

    Forget about the age thing,I think you are all missing the main point,this is an absolute game changer,a tipping point if you will, in terms of our stores long term profitability and hence goodwill values,as if they both werent already in decline enough,wait for the next 18 months,
    Bricks and mortar retail just cant compete with online sales in the gambling space anywhere,take a look at horse and sports betting in the last 3 years. Lottery sales will now follow suit and just explode online to our stores detriment

    2 likes

  20. Mark Fletcher

    I agree re age Helen. While I think this is an important move, the game changer will be the removal of all borders to selling scratchies and any gambling products on mobile devices anywhere in the world.

    0 likes

  21. Jarryd Moore

    While I have no doubt we will see online lottery sales increase exponentially in the comming years, I don’t think that, in the short term at least, it will be anywhere near as bad as what the gaming industry has experienced.

    People interact with online betting in a different manner to which they interact with online lotteries.

    As the trend to mobile gambling continues I also have no doubt we will see it become more regulated. The public backlash against Tom Waterhouse demonstrated what much of the public think of online betting. A smart newsagents association would be capitalising on this distrust.

    4 likes

  22. shauns

    going to be a fun day with happy customers trying to use their sat coupons and having to fill them out yet again ..I haver already been abused about it this morning

    1 likes

  23. allan wickham

    Shauns, same here this morning. Abuse Abuse Abuse….! And what about no visible pricing on small quick picks? Just as well I have a fridge full of beer waiting for me at home……

    0 likes

  24. shauns

    I feel that they should have to show the smaller quick picks on the price card , while i love it if they buy the large ones the option should be there in front of them .

    0 likes

  25. Amanda

    Not sure if the backlash really effected the Tom Waterhouse business model Jarryd Moore. He sold it for $34M.

    0 likes

  26. Jarryd Moore

    Amanda,

    $34 million is relative. Reports were he was seeking significantly more.

    The public backlash was real. The threat to online gambling is not the people using it but the significant number of people who would like to see it more regulated and their ability to quickly gain the attention of legislators.

    0 likes

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