The Newsagents Association of NSW & the ACT (NANA) and Canberra newsagents are concerned for the viability of member businesses after NSW Lotteries moved to allow Woolworths Petrol convenience stores to sell Tatts lottery products in the ACT, NSW and Victoria.
The Newsagents Association believes that Woolworths Petrol will operate under different, more favourable terms compared with the franchise arrangements, commissions, payment terms and fitout standards over 1200 newsagents and lottery agents agreed to with NSW Lotteries.
Last week NSW Lotteries said that Tatts Lotteries has entered into franchise agreements that will enable the sale of its lottery products through 54 Woolworths petrol convenience fuel outlets, including 24 outlets in NSW, five in the ACT and 25 in Victoria, commencing 7 September, 2015.
“Participating Woolworths petrol outlets will sell the same lottery products that are offered through the existing retail network via Tatts Tech terminals in our consistent lotteries branding,” NSW Lotteries said.
NSW Lotteries, operated by the Tatts Group, said that the corporate convenience fuel channel complies with the licensing and legislative arrangements and responsible play requirements of each jurisdiction, including the recent Memorandum of Understanding with the NSW Government.
Australian Newsagents Federation ACT director Alan Macdonald, of Macka’s Griffith Newsagency, said that while he doesn’t have major problems with the deal, newsagents had invested tens of thousands of dollars in lottery store fitouts, licensing requirements and staff training and were concerned that petrol station operators wouldn’t be made to adhere to the same standards.
Greg Handley, NANA president said: “While we understand that NSW Lottery Agents have no real input to the operations of NSW Lotteries, it is also clear that the negotiations between Woolworths Petrol and Tatts were ongoing even before the NSW Lottery Agents had been forced to sign the new agreement.”
The MOU between the NSW Government and Tatts Group signed late January stated that NSW Lotteries would not expand its lotteries into large supermarket chains for three years until March 2018, but can expand into the convenience fuel channel.