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Concerns at moves by Tatts to reduce lottery terminals in some outlets

Mark Fletcher
July 10th, 2014 · 18 Comments

Tatts has contacted some agents advising that they will take back a terminal. This advice has come as a shock and raises questions about the future of over the counter lottery sales in small business newsagencies – in the light of the Tatts online push and their apparent commitment to roll the Coles Express trial out further.

Some newsagents who have just completed their tatts required shop fit and included space allocation for two terminals have been told they will now lose a terminal. While it looks like Tatts has the right to do this I would have thought that a small business affected by this could make a case through a tribunal for adjudication.

Newsagents affected and who feel their business will suffer financially as a result of this move ought to consider options to have the matter considered in an appropriate forum. In Victoria the Small Business Commissioner would be the first port of call. In Queensland it would be QCAT.  In NSW it would be the CTTT.

From what I have seen, tatts owes its retailers a more fulsome explanation.

Here is what the Lottery retailers Association has sent to its members about this.

This week the Lottery Retailers Association (LRA) has been inundated with calls from members advising that Tatts are in the process of informing some outlets they will be losing a lottery terminal. Members report that this advice has only been given verbally and without warning.

The LRA is greatly concerned that some members report that Tatts has taken this decision without giving full consideration to the retailer’s individual circumstances. Alarmingly, we have been advised this advice has been given to outlets despite the fact that they have just completed, or are in the process of completing a Tatts shop-fit, which is designed to accommodate the current number of terminals. A Tatts shop-fit is one of the most significant investments a retailer will make. The purpose of doing a shop-fit is to help drive additional sales and help the retailer to achieve a fair return on investment. Removing a terminal at this time may put at risk the retailer’s ability to generate the additional sales needed to support this level of investment.

The Tatts franchise agreement allows Tatts to vary the number of lottery terminals at any time, but by usually giving the franchisee twenty business 20 days written notice. Retailers have reported that Tatts are asking retailers to agree to removal within 5 days or they have an option for 20 days.

The LRA would encourage all affected retailers to ensure Tatts provides this notice in writing and setting out in detail why this decision was taken. It is important that you are satisfied Tatts has considered your individual circumstances. If you have been informed by Tatts that you will be losing a terminal and are unhappy with this outcome, please advise our office as soon as possible, as we will be urgently taking this matter up with Tatts.

11 likes

Category: Lotteries · Newsagency challenges · Newsagency management

18 responses so far ↓

  • 1 Mark Fletcher // Jul 10, 2014 at 2:50 PM

    I am surprised no one has commented on this.

    0 likes

  • 2 June // Jul 10, 2014 at 3:04 PM

    I guess it is a cheaper way of getting Lotto into ON THE RUN and COLES EXPRESS – just take one from someone else instead of the expense of buying more.
    I think it is probably fair to say that they would only be taking one terminal from a multi terminal shop/outlet and I guess the
    figures would tell them where they are actually not needed.
    I know lots of agencies who have two terminals and only use one so we should
    perhaps not jump to conclusions.
    I have found Tatts to be very fair in their
    considerations so far (we have only been with them for 4 months since they took over from SA Lotteries and installed new terminals so it probably behoves to get the full story before we make a judgement call.

    2 likes

  • 3 shauns // Jul 10, 2014 at 3:19 PM

    Only one machine here , The ANF covered this a few weeks ago I remember seeing an email

    0 likes

  • 4 shauns // Jul 10, 2014 at 4:00 PM

    Maybe all these new terminals in SA and coles etc have chewd up all the spare stock and it was more cost effective to get some of the machines back especially if sales have dropped out .

    1 likes

  • 5 Judy // Jul 10, 2014 at 4:48 PM

    maybe they needed them back to put into all the chemists in QLD.

    1 likes

  • 6 Mark Fletcher // Jul 10, 2014 at 4:51 PM

    The issue for some could be one of timing. They do a new fit to the Tatts specs and then have a terminal taken – leaving a hole in the counter.

    0 likes

  • 7 shauns // Jul 10, 2014 at 5:33 PM

    yeah that would really P@#$ me off , glad I am not doing a fit out for another couple of years ,hopefully by then all the changes would have happened .

    0 likes

  • 8 Gary // Jul 10, 2014 at 6:32 PM

    Slightly off topic but relevant to Qld newsagents and those ready to do new fit outs in Qld. Article in Sunday Mail about Tats installing self service TAB terminals in Qld newsagencies. I have contacted Tatts and seems like its a strong possibility.

    1 likes

  • 9 shauns // Jul 10, 2014 at 7:03 PM

    Tab might be a good idea .I have not heard anything about this and we only just had our territory meetings

    1 likes

  • 10 Gary // Jul 10, 2014 at 7:31 PM

    Opening paragraph on Page 5 of the Sunday Mail if you still have one. Its a part of the new deal Tatts have with Qld racing.

    1 likes

  • 11 shauns // Jul 10, 2014 at 7:40 PM

    Just googled it

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  • 12 allan wickham // Jul 11, 2014 at 8:39 AM

    Geez the TAB in my centre will love that wont they…..LOL.

    1 likes

  • 13 Sam // Jul 11, 2014 at 4:42 PM

    Slight change of topic everyone, with a Saturday lotto prices increasing as of next week. There is this transitional pricing which find is a nuisance and unfair. Golden Casket (Tatts) is increasing the prices but if we sell a ticket for next week we get the current commission. So if i sell a Maxi QP today for next week I charge the customer $35.30 (currently $32.80), but come next week I charge them $35.50. How do I justify this to the customer? How do Tatts justify this to us lottery agents. We have set up a whole lot of syndicates for the Superdraw at the reduced commission rate, I don’t know if it is worthwhile to redo them all. Annoyed!

    5 likes

  • 14 June // Jul 14, 2014 at 12:30 PM

    I just use the easiest possible slogan for my Saturday customers – “saturday lotto
    has increased by 5c per game sir/madam/name”.
    The customer only hears 5c per game and they haven’t given me any flack as yet (only two days so far)

    2 likes

  • 15 James // Jul 14, 2014 at 4:06 PM

    If they are working on self serve TABS in Newsagents, you can bet they are working on self serve lotto kiosks for TABs.

    1 likes

  • 16 Gary // Jul 14, 2014 at 4:32 PM

    Yes, interesting that the article in the Sunday Mail did say that the government was “open to tweaking the legislation to allow terminals in mainstream venues.”
    What is being tweaked here and by how much?

    1 likes

  • 17 shauns // Jul 14, 2014 at 5:35 PM

    James good point and very possible

    0 likes

  • 18 Gary // Jul 29, 2014 at 10:36 AM

    For those following the proposed changes in lotto/TAB outlets in Qld, I was talking to a employee in a sports club TAB this morning. It looks like Tatts is in the process of installing the same printers that we (newsagents) have attached to our terminals.
    Is this an indication that these TAB outlets are getting set to sell lotto? The lady concerned was surprised when I told her about the proposal that newsagents becoming TAB outlets. Interesting times.

    1 likes

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