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New remuneration model for over 3,800 retailers

The Australian Lottery and Newsagents Association (ALNA) and their affiliated body the Lottery Retailers Association (LRA) are pleased to announce a positive outcome from lengthy negotiations with ‘the Lott’ (now part of Tabcorp) on behalf of thousands of lottery retailers and newsagents across Australia. The result is a positive new model that reduces retailers’ costs, improves remuneration, includes retailers in the digital economy, and enables retailers to provide an enhanced omni-channel experience for all our customers.

From 1 July 2019, (subject to regulatory approvals and excluding SA*) ‘the Lott’ retailers will have the opportunity to earn significantly increased commissions from a potential revenue increase of at least 10%*, benefit from reimbursements and significant reductions in the cost of their shop fit-outs – worth $17million over five years for retailers, and receive commissions on digital lottery sales through an opportunity for retailers to benefit from all channels.

This represents many millions of dollars a year in benefits for retailers.

Ben Kearney, CEO of the Australian Lottery and Newsagents Association said, “The 3800+ lottery retailers selling ‘the Lott’ brands in every state and territory (excludes Western Australia) have been heard and this is the start of a new relationship based on goodwill and mutual benefit.”

“We look forward to helping our newsagents and lottery retailers make this new model work, which will in turn help us to continue supporting them. These are exciting wins that benefit retailers and allow us to continue to modernise our industry.”

Of the benefits, most significant for the industry is financial reward for omni-channel retailing, giving newsagents and lottery retailers access to online sales. For the first time, there will be commissions on digital lottery spend made by the growing number of bricks-and-mortar customers who like to buy lotteries both in person and online.

Customer insights and sales data has shown us that an omni-channel customer (those who shop both online and at a bricks-and-mortar retailer) are more valuable than a digital only or purely bricks-and-mortar customer.

In order to be eligible for the new remuneration model, retailers do not have to do much more than what they are currently being asked to do. ALNA and LRA members will receive intensive support to apply the new remuneration model to their businesses.

Mr Kearney continued, “We appreciate the patience our members have shown during this lengthy, complex and very involved consultation process. We have shared detailed analysis and have actively collaborated to make this the start of a better deal for our members and a stronger partnership with Tabcorp overall.”

Gary Carter, CEO of the Lottery Retailers Association said, “Many of our recommendations during the process have been implemented and we have played a large role in advocating for a better deal for our members and streamlining processes to make this new model easier to use. This is another example of what can be achieved when an industry comes together and works hard to achieve change.”

*Retailers that are fully compliant have the opportunity to receive more than 10% additional income from the sale of lottery products (compared with FY18)

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