Lottoland offers Australian newsagents share of profits

Lottoland Australia has offered the nation’s 4,000 news and lottery agents a profit sharing agreement, which will see newsagents receive a share on every bet on overseas lotteries that they refer to the company.

Designed to “ensure wider choice for customers – and additional revenue for newsagents” through the offer of 20 percent, which it states could be worth “thousands of dollars” per month.

The Gibraltar based firm faces being banned from the country under new legislation, which wouldn’t permit Australians to bet on the outcome on international lotteries.

The Chief Executive Officer of Lottoland Australia, Luke Brill, wrote an open letter to newsagents, stating that newsagents have an opportunity to benefit financially, with a ban manifesting “Tatts’ monopoly through its parent company, Tabcorp.”

The letter by Mr Brill in full read: “I am writing on behalf of Lottoland Australia to update you on the Federal Government’s recent announcement regarding online lottery betting – and to make you an offer we believe will be good news for your business.

“As you would be aware, the Government announced last week its intention to effectively ban online betting on lotteries and keno, a move supposedly designed to protect newsagents.

“The reality is that the proposed legislation could make life even more difficult for newsagents while reducing choice for hundreds of thousands of customers.

“To be clear: Lottoland Australia does not offer betting services on Australian lotteries. We sell no products that newsagents sell. We do not compete directly with you and we have no intention of doing so in future.

“In fact, no one has come up with credible evidence that actually proves that Lottoland Australia has taken sales away from 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.

“Last year, in discussions with the associations that represent 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 percent commission on the profits from every bet they refer to Lottoland.

“I understand the difficulties faced by your business, due in part to technology. Such disruption is now the norm globally, as evidenced by the rise of Amazon, Uber and AirBnB.

“Another financial threat to you is Tatts continuing to promote the digital sale of its products, such as Powerball and OZLotto.

“According to Tatts‘ own figures, their digital sales increased by a massive 30 per cent in the half year to December 31 – money Tatts has diverted away from newsagents and other small businesses.

“If passed, the legislation proposed by Canberra will cement Tatts’ monopoly, which is not good news for newsagents – or for customers.

“We believe in giving our customers more rather than fewer choices.

“We believe in a level-playing field that encourages rather than restricts competition and innovation.

“That is why we want to work with you as a true business partner.

“It’s time to talk.”