The ALNA and LRA say their negotiations with ‘the Lott’ will deliver a better deal for newsagents and lottery agents.
The Australian Lottery and Newsagents Association (ALNA), and their affiliated body the Lottery Retailers Association (LRA), have been in long negotiations with ‘the Lott’, which is now part of Tabcorp.
But their negotiations have finally borne fruit, they say, for thousands of lottery retailers and newsagents across Australia.
A brand-new model
The result is a “positive new model” for retailers, says ALNA. From July 1, 2019, subject to regulatory approvals and excluding SA, ‘the Lott’ retailers will be able to:
- Earn significantly higher commissions from a potential revenue increase of at least 10 per cent.
- Benefit from reimbursements and “significant” reductions in the cost of their shop fitouts. These are worth $17 million over five years for retailers.
- Receive commissions on digital lottery sales through omnichannel options for customers.
The new model will bring in many millions of dollars a year in benefits for retailers, ALNA says.
ALNA CEO Ben Kearney said, “The 3,800-plus lottery retailers selling ‘the Lott’ brands in every state and territory (excluding WA) have been heard. 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. This in turn will help us to continue supporting them. These are exciting wins that benefit retailers and allow us to continue to modernise our industry.”
The omnichannel jackpot?
According to ALNA, the most significant prize for the industry is the financial reward for omnichannel retailing. This will give newsagents and lottery retailers across Australia access to online sales.
For the first time, says ALNA, agents will get commissions on digital lottery spending from the growing number of bricks-and-mortar customers who like to buy lotteries both in person and online.
Customer insights and sales data have shown that omnichannel customers are more valuable than digital-only or bricks-and-mortar-only customers.
