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Lotteries

The Lottery Corporation could learn a thing or two from Lotterywest about considering new outlets

Lotterywest has been engaging with existing retailers on the process of considering new possible locations:

Dear

In June we launched our new Expression of Interest process for sourcing new Lotterywest outlets and business owners, giving retailers the best opportunity to operate a successful lottery business in prime locations for player access.

New locations
Lotterywest identifies locations by assessing their potential to support a new outlet and is only approved after a thorough process that indicates unmet player demand, minimal impact to existing retailers and a benefit to the community.

New locations approved under this new process are now available to view via the Lotterywest website and on Retail Link.

Anyone interested in opening a new outlet for any of these locations must complete and submit an online application by 5pm, Wednesday 9 November.

Expression of Interest applications
Applications for new locations are assessed through a fair and competitive process, considering the most suitable combination of location, business type and business owner.

Business plan assessments, site visits and face-to-face interviews will be conducted with shortlisted candidates before appointing the successful applicant.

How to apply?
Please visit our website to view available locations, download our EOI Information Pack, and apply.

We are also holding an information session on Tuesday 4 October at 6pm. You can attend in person at our Lotterywest office or join online. Please email retail.enquiries@lotterywest.wa.gov.au to register your attendance.

If you have any questions, please contact Customer Services on 133 777 and ask to be put in contact with Retail Support or your RRO.

Kind regards,
Lotterywest

The most common complaint I get from retailers about The Lottery Corporation is their lack of transparency and fairness when it comes to new outlet consideration.

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Lotteries

Lottery Office competitor to traditional lotteries appears to be gaining traction

www.lotteryoffice.com.au, owned by Global Players Network Pty Ltd , is appearing in several social media feeds and while they are not engaged in paid advertising as much as in their past, traffic to their website is growing as this graph I pulled yesterday. The second graph shows keyword penetration in key groups.

I mention it because I suspect plenty of lottery retailers are not aware of this competitor that offers games related to overseas lotteries.

They pitch interestingly on Twitter. Here’s a post from yesterday, for example:

8% of their online traffic comes from people searching for lotto in Google. This keyword is searched 301,000 times a month in Australia. The Lottery Office ranks at position 6 currently in Australia.

I don’t know their revenue, or whether they are winning customers from sales of over the counter games. What I know know is that they are present in the marketplace, and pitching themselves well.

Their website shares more information abut them:

The Lottery Office is operated by Global Players Network Pty Ltd. We are Australian owned and operated and licensed by the Northern Territory Government. We have offices in Darwin, NT and on the Gold Coast, QLD.

The Lottery Office is unlike other companies. Our unique business model allows you to enter our own Government approved lotteries. When you enter one of our lotteries, we will then purchase a matching ticket in a major overseas lottery and we will claim any prize that is won from the overseas ticket and pay you the exact same amount. This ensures we are able to pay out any prize and not have to rely on an insurance policy like other companies. It also allows our players to have the chance to win from matched tickets with major overseas lotteries having prizes reaching into the billions.

I mention this so as to avoid confusion.

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Lotteries

More self-serve lottery kiosks in New York

I am not sure if it as a result of the pandemic or simply natural progression but I have noticed more lottery game and scratch ticket send-serve vending units inside retail settings, like this Hudson News outlet that I visited today at the Port Authority bus terminal:

The shop did have a lottery sales counter, but it was not obvious. In the 10 minutes I was there 1 person purchased lottery tickets at the counter and 5 or so from the self-serve unit.

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Lotteries

Lottery in NZ retail

I am grateful for the opportunity to see a range of retail businesses in New Zealand in the last few days. Lottery branding has changed since I was there last, more than 2 years ago. Signage is more consistent, as is in-store placement. But, the space requirements in store remains less than we see in Australian lottery retailers.

Here are 3 photos from one business. They represent what is typical for NZ independent lottery retailers.

Out of store signage:

The customer ‘bench’:

The sales counter from the customer side:

All compact. Neat. Consistent.

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Lotteries

Text marketing from The Lott

The Lott sent out a text message this morning pitching their $30M draw this Saturday:

Mark, TattsLotto’s $30M Megadraw is this Saturday!
Grab an entry in-store, online or on The Lott app http://bit.ly/play-megadraw
Tatts. Play Responsibly. Optout?TXT STOP to 0429542184

While they will say they pitched in-store first, the link is for online purchase. They could have easily provided a link for finding my local retailers.

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Lotteries

Now, this will be interesting

Story (PR?) from News corp today.

Aussies will be able to play some of the world’s biggest lotteries from newsagents

As of Monday Aussies are able to try their luck in some of the world’s biggest lotteries.

July 4, 2022 – 5:12PM
NCA NewsWire

Aussies will from Monday be able to play in the world’s biggest lotteries from more than 1400 newsagents across the country.

A new partnership between Australian-owned The Lottery Office and payment platform blueshyft means players can now deposit funds at the selected agencies, which they can then use to enter the draws.

The lotteries include the Italian Super Jackpot ($AUD 357 million), European Millions ($AUD 332 million) and USA Mega Lotto ($AUD 543 million).

Newsagents, in turn, receive commissions for deposits made and accounts created via the blueshyft platform.

The Lottery Office CEO Jaclyn Wood said the company expected the blueshyft deal would boost the confidence of lottery players keen to try their hand at playing major jackpots, but hesitant to deposit funds online.

“This will give The Lottery Office’s existing customers additional flexibility to make payments, but also open up a new channel for us to engage with new players,” she said.

Ms Wood said blueshyft had partnered with more than 20 companies including Ladbrokes, FedEx and News Corp to offer payments via an iOS terminal in newsagents since 2015.

It had processed more than 1.4 million transactions in the 2021/22 financial year, showing Australians were rapidly adopting the platform.

Ms Wood said the deal was also a win for newsagents, giving them a new and risk-free revenue stream.

“For any deposit made in-store, the newsagent will receive a percentage or dollar amount, whichever is greater,” she said.

“For every qualified new customer that comes to us via the newsagency, the newsagent receives an attractive referral payment.”

I have no interest in this or anything connected with Blueshyft in my newsagencies. Their type of agency business has no future in our channel in my view.

Maybe News Corp. could update their story to say at SOME newsagents.

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Lotteries

Herald Sun shows itself as political lobby mouthpiece, again

This political claim in the headline published by the Herald Sun is misleading in may opinion.

The decision to change the game was driven by the lottery businesses from what I understand. That is where it initiated, which does not make it a tax drive.

The Herald Sun ‘report’ feels like it is designed to make the Victorian government look bad. It could also anger lottery customers, which could impact sales, and hurt newsagents.

It’s a non story other than that OzLotto is changing in the hope of, from what I understand, of driving more jackpots, which are expected to drive more sales.

News Corp does run a range of lines across its Australian platforms about tax. What they should disclose at the bottom of every article is the amount of company tax paid in Australia by the company and the percentage of gross revenue this is. Michael West covers this and recently shared:

Murdoch’s News Australia Holdings paid nothing for the seventh year on the trot, despite $1.7bn in income, and Foxtel – as reported here – has been conveniently and slyly “disappeared” offshore to the secrecy jurisdiction of Delaware amid rumours of a sharemarket float.

My point is this media company often shouts about tax, especially as it related to the Labor side of politics, while not reporting on its own decisions and actions relating to its tax contribution to Australian society.

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Ethics

Tighter controls for gambling customers in newsagents in Belgium

Click here to see this report published yesterday by The Brussels Times.

Tighter controls on gamblers in newsagents

Monday, 28 March 2022
By Helen Lyons

Tighter controls on gamblers in newsagents

A newspaper shop in Brussels advertises Lotto products. Photo by Helen Lyons/The Brussels Times

Shops that offer sports betting and other means of gambling will be required to register all customers and check whether they are of legal age or on a blacklist from 1 October 2022.

The new legislation is part of a package of gambling reforms introduced by Federal Minister of Justice Vincent Van Quickenborne after bpost sold its chain of newspaper shops – many of which also offer gambling and sports betting – to a gambling company.

“After the clearer rules for gambling in newsagents, we are taking another important step in protecting people against the devastating consequences of gambling addiction,” Van Quickenborne said in a statement.

“The list of excluded persons is a powerful weapon that we want to use more often. Therefore, we also call on all general practitioners, care workers or social workers to use it, in consultation with the person concerned, at the first signs of problematic gambling behaviour.”

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Lotteries

Tabcorp reaches out to flood impacted retailers

Management at Tabcortp’s TheLott sent this to retailers:

Dear Retailer,

 

The past few days has been very unsettling and difficult, with the recent floods causing significant damage and disruption to our local communities and businesses.

To help retailers who are impacted, the Queensland and Federal Government has activated assistance for affected individuals and businesses. I encourage you to review the information below to see what emergency assistance you may be eligible for.

Disaster assistance for individuals

Australian Government Disaster Recovery Payment This is a lump-sum payment of $1,000 per adult and $400 per child if you are eligible.

 

At this stage, the Local Government Areas of Gympie and North Burnett can make a claim until Friday 26 August 2022.

 

Please visit this dedicated website to find out more and how you can apply. Please continue to check this website regularly as we expect more Local Government Areas to be added to the eligibility list over the coming days.

 
Personal Hardship Financial Assistance This financial assistance has been activated for Queensland communities who have been impacted by the rainfall and flooding in the Local Government Areas of Gympie and North Burnett.

 

Please visit this dedicated website to find out more information, and please continue to check this page regularly as we expect more Local Government Areas will be added to the activation areas over the coming days.

 

 

Disaster assistance for businesses

Disaster Recovery Allowance (DRA) The DRA assists employees, small businesspersons, and farmers who experience a loss of income as a direct result of a major disaster.

 

You might be eligible for a maximum of 13 weeks’ payment from the date you have or will have a loss of income as a direct result of a disaster.

 

The DRA will be available to the affected Local Government Areas of Gympie and North Burnett, with further flood-affected Local Government Areas expected to be added in coming days, as the damage becomes clear.

 

If your business falls in these Local Government Areas and you have been impacted by the floods, we encourage you to phone the DRA on 180 22 66 or visit this dedicated website to find out more.

 

 

Further support and information

Community Recovery Hotline Please call this hotline on 1800 173 349 if you are experiencing emotional stress or require personal financial hardship from this event.
National Retail Association Government Grant support Please call the National Retail Association on 1800 573 322 or via email at policy@nra.net.au who has a dedicated team on standby to help navigate the Government Grants that you could potentially be eligible for, which may include disaster relief.

 

Please monitor the above websites regularly for any further changes as the situation evolves.

If your outlet has been impacted recently by flooding and you would like to discuss this further, please reach out to your Business Development Manager.

Take care and stay safe.

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Lotteries

Major lottery news out of Victoria

Tabcorp and Lottoland have been given 20 year licences to sell keno online. Yes, that Lottoland!

Here is the government press release:

23rd Feb 2022

Tabcorp And Lottoland Awarded Victoria’s Keno Licences

Minister for Consumer Affairs, Gaming and Liquor Regulation Melissa Horne today announced Victoria’s Keno licences have been granted to Tabcorp and Lottoland after a competitive tender process.

The two licensees will be able to provide Keno online for the first time, as well as through traditional retail outlets, backed by harm minimisation and consumer protection measures.

The two-licence model provides consumers with a greater choice and is better for business. It allows distributor venues to benefit from competition and innovation as it removes a one licensee monopoly on the market.

Tabcorp and Lottoland will both be authorised to conduct and distribute the game of Keno in eligible hotels, clubs, wagering outlets and electronically throughout Victoria.

Stronger harm minimisation and consumer protection measures will also be introduced to help promote responsible gambling for those who choose to play Keno in Victoria.

These measures come after the Government conducted a robust review into the future of Keno in Victoria, consulting with industry, community and government stakeholders.

Under the changes, the Minister for Consumer Affairs, Gaming and Liquor Regulation can issue harm minimisation directions to both Victorian and interstate Keno game providers when providing Keno to people in Victoria.

The directions will focus on key areas such as incentives, direct marketing, account closure, deposit limits, activity statements, responsible gambling messaging and maximum draw frequency.

Harm minimisation directions will be based on the National Consumer Protection Framework (NCPF) for online wagering, with additional elements to support online Keno specifically.

Applications for the new licences were assessed against a number of criteria, including corporate and individual probity, as well as the economic benefits to the state.

The 20-year licence will commence on 15 April 2022 after the current licence, awarded to Tabcorp in 2012, expires.

Quotes attributable to Minister for Consumer Affairs, Gaming and Liquor Regulation Melissa Horne

“The industry has changed significantly since 2012, with new technologies and new online market entrants, so we have updated the Keno licence to allow for a more modern approach.”

“These changes will benefit businesses, while also ensuring stronger harm minimisation and consumer protection measures are in place so those who play Keno in Victoria can gamble responsibly.”

Hmm, I’m not sure how the changes benefit current lottery retailers.

Lottery Daily has their take on this:

Tabcorp and Lottoland have been awarded dual 20-year licences to offer Keno games in the Australian state of Victoria.

The new licences, which take effect from 15 April 2022 and run to 2042, are a return to the pre-2012 structure of two authorised operators in the Australian state, before Tabcorp’s 10-year exclusivity.

While Tabcorp’s current licence only covers retail, the new agreement also stretches to cover digital services after the company paid an up-front fee of $25m.

Sue van der Merwe, Managing Director of Lotteries & Keno at Tabcorp, commented: “Tabcorp is pleased to continue its partnership with the Victorian Government, with the longer term and expanded channel flexibility offered under this licence.

“The new structure will allow us to continue offering Victorian players a world class Keno product and responsibly grow the game further, backed by our extensive retail and brand presence and the expertise gained from our existing Keno online business.”

Lottoland also shared its enthusiasm over the deal as it announced its online platform KenoGo is gearing up for launch.

Nigel Birrell, CEO of Lottoland, added: “We are thrilled to have been granted a Keno licence by the Victoria State Government and look forward to launching KenoGo in 2022.

“I would like to personally thank the Minister for Gaming and Liquor Regulation, Melissa Horne, and the Victorian State Government for awarding the first dual licence in Australia.

“Most importantly, this licence means that consumers in Victoria will be able to enjoy Keno online on their smartphone or computer for the first time ever, with new gaming experiences and greater choice through Lottoland.”

The move to award dual licences follows the Victorian government’s Keno Licence Review and subsequent invitation to apply for a Keno licence process.

My view is there is no upside trend for over the counter lo9ttery purchases. yes, I understand big jackpots, l like tonight’s $120M Powerball will spike traffic, but not as much as they used to … because … online.

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Lotteries

Retailers keen for OzLotto changes

The SA Government recently gazetted changes to the state’s Lotteries Act and through that offered.May 11, 2022 as the date from which changes to OzLotto will apply.

7 numbers from 47 are drawn and three supps.

The changes are expected to reinvigorate interest in OZLotto through an increase the jackpot opportunity, which plenty of retailers love.

For retailers reliant of lottery products, the changes are good news.

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Lotteries

The high cost of buy now pay later for purchasing lottery tickets

Afterpay and Humm have cards that look like credit cards through EFTPOS terminals. They can be added to a digital wallet for watch and phone tap. It’s only when the retailer discovered the 3.5% and more cost per transaction that they realise the higher cost product has been used.

I’ll leave the social responsibility question of using buy now pay later for lottery ticket purchases for another time.

Since the EFTPOS terminal providers don’t know what’s in the basket they cannot block the transaction. They could. The tech is there to feed this to them. Now, by basket, I mean each transaction – the EFTPOS terminal and the network to which they connect do not know what is in each transaction.

The only real option right now for retailers is to ask each customer about the method of payment. But this will slow transactions at the counter and, likely, lead to shopper frustration and, maybe, embarrassment.

I have discussed the issue with a range of stakeholders and they are engaged with it. It is too early to say if that engagement will lead to change that satisfies retailers – I say this because one outcome could be the removal of BNPL from the channel altogether and I wonder if impacted newsagents would want that.

Retailers accept EFTPOS payments through a connected terminal in good faith. They have an expectation of a reasonable soft of that method of payment. The gap between .75% and 3.5% is too much, too great, especially for items over which the retailer has no control of the selling price.

I have looked at the basket solution as this is what has been established listed for the Indue card here in Australia where people with the card are permitted to spend it in a designated group of items. The tech. block them using the card on non approved product categories.

Some companies manage use of their finance services by not permitting certain retailers in a whole of business approach. The basket approach is better. But, in this instance with lottery products, the cost of implementation in tech. and at the counter in dialogue with shoppers could be problematic.

This is a complex matter that needs discussion.

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Lotteries

Spain’s lottery retailers strike for better margin

Spain’s lottery retailers went on strike last week as part of their campaign to list their commission from 4%. See the story from The Guardian.

The vendors, who had shut up shop for the day, say they deserve more than the 4% of the ticket price they currently get, arguing that 80 cents on a €20 ticket is not enough. They point out that their commission rate has been frozen for the past 17 years despite huge rises in living costs – not least Spain’s skyrocketing electricity prices.

“Prices go up, taxes go up and the commissions remain the same,” Natalia de la Fuente, the daughter of a lottery seller, told Reuters. “We have to pay our bills … This is impossible.”

4%. Sheesh, it makes the arrangements in Australia look good. But, from what I have seen of lottery outlets in Spain compared to Australia, the compliance cost there for retailers is much lower.

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Lotteries

Tabcorp seeks to block retailers from using juniors to sell lottery products

Tabcorp’s The Lott announced to retailers on Friday that staff under 15 years of age will no longer be allowed to sell lottery products. This is infuriating some retailers.

Tabcorp’s announcement claimed The restrictions on minors selling lottery products should not have a direct impact on your employment decisions. I have had retailers contact me claiming this is not true.

Retailers have staffed their businesses based on a set of rules and regulations. To have them change is challenging. To do this without wide consultation is disrespectful. To do it during a busy period of the year is offensive.

This move increases the labour cost base for selling lotteries in retail. It also reminds retailers that regulations they operate under are tighter than selling lottery products online, where an app or website cannot do a reasonable age check.

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Lotteries

Tabcorp results show a slowing of online migration?

The latest results released by Tabcorp in their Annual Report reveal that the percentage of lotteries revenue from online has increased, but not on the previous trajectory. The year on year comparison shows a jump from 28% in FY2019/20 to 32.8% in FY2020/21 and while that jump is sizeable, it’s the 6 month jump that is lower. Six month earlier they were 32.1%

32.8% of revenue coming from digital (online) must interest lottery retailers, especially since Tabcorp says it would like to see online revenue grow.

Another possible concern for retailers will be Tabcorp’s focus on continued diversification of the retail channel. Plenty of retailers have already complained about new outlets opening nearby and an ineffective and opaque appeals process run by Tabcorp.

You can see from the Annual Report that they are only part way through this engagement with expanding the retail network. Note below: Evolve retailer mix and CX uplift. (cx = customer experience.)

These slides from the Annual Report deck don’t contain detail useful to retailers. But, there is enough there of concern. The company, in its accompanying press release, spoke re retail:

Lotteries digital turnover grew a healthy 27%. Digital accounted for 32.8% of total lotteries turnover in the year. Customers continue to transact predominantly through the retail channel. Investments to uplift lotteries’ presence and role in retail illustrates the value Tabcorp places on it as part of an omni-channel model that supports customers to buy when, where and how they wish.

The bottom line from my perspective is that lottery products, while important to retailers do present challenges in terms of upside along with channelise in terms of increased outlet competition.

My tip if you have lotteries through Tabcorp: do everything to meet your obligations while at the same time working on the business to attract new shoppers for better margin product over which you have more control, as this will be your future.

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Lotteries

Tabcorp pushing online purchase of lottery tickets during lockdown

I received these two text messages Friday morning from Tabcorp. While they do mention in-store purchase in the text message, the link, of course, if for online purchase.

Tabcorp people know what they are doing here – leveraging uncertainty over lockdown to drive online purchases. And, yes, I checked, the link in the text message does take you to their site for online purchase.

I think the mention of in-store is only so they have a defence in case retailers complain. This text message is all about online purchase, which reinforces my view that there is little to no upside in over the counter lottery sales in retail.

What could Tabcorp have done? They could have setup a page on their website listing all their retailers permitted to be open, and promoted that.

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Lotteries

Powerball jackpot a blow to east coast lottery retailers

While newsagent lottery outlets are able to be open in lockdown areas, foot traffic is down by between 50% and 75%. This will impact the role they get to play in the $80M Powerball jackpot.

The jackpot itself presents an opportunity for Tabcorp to move more in-store shoppers to online. Once you have purchased online for the first time, I think you are less likely to purchase in-store again based on the ease of the experience.

Tabcorp could recalibrate its advertising for the jackpot to pitch in-store. But that does not play well for the Covid messaging. They could reconsider compensation for lottery retailers as it is their faithful service of customers that has been key to Tabcorp having a customer pool to migrate online.

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Lotteries

Tabcorp ramping up text marketing?

Looking back on text messages from Tabcorp over the last couple of years and it looks like they are texting more now than in the past. And, while the text mentions in-store, of course you can’t be in-store in a click.

Text message marketing is very effective at driving immediate engagement. IOf the target has not bought and if a $20 first division prize is appealing, in a couple of click they can have a ticket and that’s what matters here.

Tabcorp are doing here what any shareholder would want them to do. They are doing what they have to to capture the impulse purchase. It is so much easier to click and purchase than walk or drive to the shops, front up and purchase over the counter. Indeed, much easier to do this today than a couple of years ago, pre Covid.

So, yeah, I understand why Tabcorp is texting people. I’m writing about it today so that lottery retailers understand.

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Lotteries

Tabcorp announces plans to de-merge lotteries

Tabcorp this morning announced plans to de-merge the lotteries and keno business from the gaming company.

This move, which is expected to be completed mid 2022, would result in an organisation more focussed and reliant on lotteries revenue. I suspect this would see pressure on the retail network increase.

With digital sales accounting now for 32.1% of lotteries revenue, smart management would be focussed on driving digital sales as I suspect the cost to the business of digital sales is less than the cost of over the counter sales.

To any retailer who asks me I say – don’t run your business such that it is reliant on lottery revenue for survival. The less you rely on lottery revenue and lottery shopper foot traffic the brighter opportunities for your business.

The bottom lime of today’s Tabcorp announcement is continued disruption for lottery retailers.

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Lotteries

Tabcorp decides against an increase remuneration for small business lottery retailers

In a blow for small retail businesses confronting annual increases in rent of at least 5%, in wages of 3% or more and in other operating costs of between 5% and 10%, Tabcorp has decided to not increase the commission paid to its lottery retailers. Here is a letter sent to retailers. Happy end of financial year folks.

While they thank parties for their submissions, the letter shows that it was all wasted effort by all who made submissions, just as it is for most who object to new outlets being approved near them. Tabcorp is great at telling retailers who much they care and great and doing very little to put the words into action in my opinion.

Tabcorp shareholders have every reason to be happy. Small business retailers will keep working, for less in real terms, because some do not see an alternative and because some see the commission as icing on the cake for whet else they dip in their business.

The lowest paid is the lottery food chain are locked in to be paid less in retail terms.

What frustrates me is that this giant of a company punitively controls so much of what the agent retail businesses can achieve – in such a way as to hinder good and fair retail management.

28 June 2021

Dear Retailer

Subject: Commission Review Determination

As a proud operator of lotteries across Australia, Tabcorp recognises and appreciates the critical role retailers have played and will continue to play in the future, in the success of the Tabcorp Lotteries business.

As you are aware, in Victoria, Tatts is required to formally review the commission for retailers no less than three times during the period of the Victorian Public Lottery Licence. Although this is not a requirement across all jurisdictions, Golden Casket has elected to extend this review to include all of the jurisdictions in which we operate. After an extensive consultation process, we have now concluded this review.

As part of the current commission review and consultation process Golden Casket has:

  • considered all of the factors listed in our letter to retailers in November 2020;
  • actively engaged with Industry Associations that hold a current collective bargaining authorisation under section 88 (1A) and (1) of the Competition and Consumer Act 2010 in accordance with 3.3 of Schedule 4; and
  • invited retailers not associated with the Industry Associations to make individual submissions.We would like to thank ALNA and NLNA for their detailed submissions and subsequent engagement, as well as thank those retailers that are not members of ALNA or NLNA, for taking the time to provide us with their submissions.Following our extensive review and consultation process, Golden Casket advises that no changes are proposed for the maximum commission rates and the current commission rates will be retained.

1. Rational for retention of current commission rates

As you are aware, the current commission rates were adjusted on 19 August 2019 as part of the Omni- Channel Remuneration Program. Golden Caskets analysis demonstrates that these commission rates reasonably reward retailers for their role as a stakeholder in the conduct of Public Lotteries in Queensland.

Total commissions paid to Golden Casket retailers collectively have increased and are projected to continue growing. Through the successful management of the lotteries portfolio, coupled with the implementation of the Omni-Channel Remuneration Program, Golden Casket has delivered to retailers a steady increase in commissions, above the CPI during the term of the Current Licence, noting fluctuations related to jackpot activity.

2. Benefits delivered to retailers as a result of the commission review

Although Golden Casket does not support an increase in commission rates at this time, we will continue to regularly evaluate and seek to improve the net remuneration paid to retailers via competitive rate and fee structures. We will also continue our investment in product and marketing initiatives that drive growth and sales for retailers.

The Omni-Channel Remuneration Program which commenced on 19 August 2019 with enhanced remuneration arrangements for retailers, has delivered over $21M in FY20 in additional income to retailers, with a further $8.9M invested by Tabcorp in the DigiPOS buyback program.

Outside of the formal review process established by the government, Golden Casket regularly reviews methods to help reduce the costs for retailers and will continue to do so. We consider that this dynamic regular review process, which considers relevant and current factors, delivers better outcomes than simply operating a system with prescribed fixed / regular commission adjustments.

Golden Casket also has a strong pipeline of planned initiatives which are focussed on delivering ongoing benefits to retailers and building a stronger retail network. Such initiatives include:

  • exploring ways to drive new foot traffic for lotteries retailers;
  • training programs for our retailers;
  • the provision of retailer syndicates via The Lott Website and app;
  • terminal enhancements to bring the retail and digital experiences closer together; and
  • The Lott rebranding program that will see a single master channel Omni-Channel brand across boththe digital and retail networks.

3. Golden Casket future approach to remuneration of retailers

Given the maximum commission rates were increased in 2019 as part of the Omni-Channel Program launch, Golden Casket advises that the maximum commission rates will remain at the current levels.

Golden Casket will continue to regularly monitor the performance of its retailers including the level of commission paid to retailers and consider whether the commission reasonably rewards retailers for their role in the conduct of Public Lotteries. The implementation of the Omni-Channel Remuneration Program outside of the Schedule 4 requirements demonstrates Golden Caskets absolute commitment to this approach.

Conclusion

Golden Casket is committed to working in partnership with lotteries retailers, industry associations and the government on other programs that can assist retailers in maintaining relevance of their businesses into the future.

Thanks again for your participation and engagement with the Commission Review process and for your ongoing support. Should you have any further queries, please do not hesitate to contact your Business Development Manager.

Yours sincerely,

Antony

Antony Moore
General Manager Lotteries Retail

This letter reflects the challenges of being an agent, of relying on the entity in control to care for you beyond lip-service.

I suspect Fair Work would have decided differently if they were involved and looked at lottery agents as employees.

UPDATE (10:49am): Here’s part of ALNA’s response emailed just now:

What is ALNA’s position on the determination outcome?
Overall, ALNA is very disappointed with the outcomes for our retailers from the CRM process that were communicated today, we hoped and believed Tabcorp would be able to positively respond to our recommendations and deliver a range of improved solutions for retailers. Given the current circumstances, we feel it misses an important opportunity to address key issues and to deliver timely and meaningful solutions for the challenges facing retailers right now, and the broader Tabcorp business, that we had highlighted in our submission, with solution focused recommendations to this CRM process.

By not providing a baseline increase in commissions to retailers in this second review in the CRM which is affordable and already offset by ticket price increases, we believe Tabcorp will not meet its Lottery Licence and CRM obligations to retailers, as it has now been nearly 10 years since the retailer’s baseline commission safety net was increased. As a result, ALNA will be raising our concerns over the outcomes and recommendations from this review with the Victorian Minister for Consumer Affairs, Gaming and Liquor Regulation, as we did previously after Tabcorp’s response to the 2018 Commission Review Mechanism process.

While we acknowledge that since the last CRM, and our subsequent representations to Government, which ultimately resulted in the new Remuneration Program being launched, the majority of retailers have earned additional commissions and these have been very beneficial, they are not guaranteed like a baseline increase is and so they do not provide the safety net that retailers desperately need and that we have justifiably raised in this CRM process. They are ‘at risk’ commissions offset by a rise in fees and ticket prices and conditional on performance measures to discount these.

Our requests in the latter part of these negotiations were calibrated, to be reasonable, measured and affordable for Tabcorp in the economic circumstances, asking that they pass through a portion of the ‘at risk’ component of commissions in the remuneration program and asking that they reconsider their approach to available Omni-channel digital commissions and to improve these.

Furthermore, the opportunity this CRM review provided to adopt recommendations aimed at shifting retailers’ perception of the remuneration program from somewhat punitive and migratory to win-win rewarding and incentivising, should not have been overlooked. We believe this is critical for franchisees ongoing success with their franchisor.

9 likes
Ethics

Lottoland still out there pitching

I received a marketing email from Lottoland overnight. While their wording pitches betting, the product appears unchanged.

I took a look at their web traffic using a respected analytics tool I pay to access. They are getting serious traffic to their Australian website, overing around 30,000 visitors a day for the last nine months.

 

1 likes
Competition
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