In a move that I expect will divert purchases from newsagencies, a South Australian fuel retailer has announced plans for substantial fuel discounts for lottery purchases and other product category purchases.
With this happening in SA, I wonder how long before we see it in the 7-Eleven owned Mobil fuel outlets.
When Tattersalls did the deal with 7-Eleven they said Tatts products would be at the counter add-on. Over time that has changed with lottery tickets featuring in advertising to drive traffic.
Now we have this announcement in SA yesterday. I don’t want to call it prematurely but I do suspect that this move is a game changer. It will certainly get newsagents looking at the lottery category more carefully. How can they compete with this.
And to those outside SA, On the Run is more community connected and more local than the supermarkets. I’m told there will be more trust in this being a genuine offer that is the case with Woolworths and Coles fuel discounting.
In the Newsagency of the Future series I’m in the middle of I challenge newsagents to contemplate business without lotteries. It’s a value question, one that must be considered. Now, in the face of yesterday’s announcement, it is more timely than ever.
If you have lotteries in your newsagency and had a fuel outlet nearby offering a discount off fuel with a lottery ticket how would you react? You can’t do nothing for to do that would invite migration.
On the Run has declared war on lottery product sales with this move. Newsagents need a plan for confronting this challenge.
How does this fit in with inducing people to gamble?
One of the casinos got into trouble for handing out vouchers for how to play games at the casino.
If the fuel discount voucher is ok, so then is me offering a free smoke with each lotto purchase ???
Max is raises these good questions and others. It is also an issue for the state government.
be interesting if someone purchased lotto on their credit cart, then used the fuel discount to purchase fuel and paid for it on their card as well, like to see how much money they make on that transaction? Have to be something in the fine print or they have very healthy margins elsewhere!!
This move is not allowed under the responsible gambling code, which prevents lotto being cross promoted with every day essential items.
If Bill is correct, the next few moves will be interesting.
Bill I hope you are doing something about this – and every newsagent in SA. Now is the time to act if its to be stopped. Keep us posted.
Hmmm! South Australia, using gaming products as incentive for fuel sales, 16 year olds can drive(and need to buy fuel), etc. I wonder what Tricky Nick Xenophon has got to say about this.
Why the ‘tricky’ moniker ‘Dave’?
Mark. He first came to my attention because of the very innovative tactics he used when he campaigned for the Senate. (Donkeys in Rundle Mall etc). In this sense a tricky guy is a pretty cool guy as far as I am concerned.
Thanks for the clarification. Ever since the Tricky Dicky moniker for Richard Nixon the term has been negative in my head.