Australian Newsagency Blog

A blog on issues affecting Australia's newsagents, media and small business generally.

Comparing Lottoland to Tatts Group’s The Lott app

Mark Fletcher
September 13th, 2016 · 3 Comments

Over the last ten days I have been playing with the Lottoland app to compare the real life product with that we are seeing relentlessly promoted on our TV screens.

I have also been comparing Lottoland with the Tatts app, now branded as The Lott, as that app is the competitor more so that the newsagents who are the target of the Lottoland TV commercial.

The sign up with Lottoland was easy, completed in seconds. While it asked for my age, there was no check, no proof required.

Depositing funds was easy too. This part was much faster than Tatts. I was able to buy my first ticket using Lottoland in a couple of minutes.

The Lottoland app and website explain clearly what the product is. There is no illusion about what you are buying. This is from their website:

Screen Shot 2016-09-12 at 7.07.11 PM

Given how Lottoland operates, how you purchase tickers and are paid for winning numbers, I suspect the difference between buying a lottery ticket and betting using the numbers you would have selected for the ticket does not matter that much.

While Tatts does not send a notification if your ticket does not win, Lottoland does and they do it well. Take a look at this email:

Screen Shot 2016-09-12 at 7.13.53 PM

When you win there is an email too, with prize details. The money is in your account right. Tatts operates the same way.

Where Lottoland is most significantly different is in what it sells. In addition to Australian games, there is a large mix of international games. Here are some of the international games I could play last night:

Screen Shot 2016-09-12 at 7.17.06 PM

This to me is the big competitive advantage for Lottoland over Tatts. For people who like to gamble with lottery products, Lottoland has a greater range of products from which to choose compared to the Australian products.

I think the Lottoland challenge for newsagents is two fold: there is the challenge of in-store versus online and there is the challenge of more games more often compared to the small mix of Australian games.

While Tatts will fight Lottoland on the front of product mix, newsagents have to run their own fight on the issue of in-store versus online. I can’t see Tatts helping too much with that fight as I suspect they prefer online sales. They are certainly enjoying growth online compared to in-store.

The other factor in all this is governments. They stand to lose considerable revenue if lottery purchases migrate from Tatts to Lottoland.

Lottoland is a disruptive business model. Like Uber is to taxis. Like digital is to print. Like Airbnb is to hotels. Like Netflix is to free to air TV.

Competitors ignore disrupts at their peril.

Newsagents need to have a plan because I suspect Lottoland is not here for the short game. They look like they are here to stay.

If newsagents do not have a plan, they could become collateral damage in a fight involving Lottoland, Tatts and state governments.

The plan starts with understanding the opposition. I hope this blog post provides some understanding. If you have tatts in your business, sign up for a Lottoland account and get your own first-hand experience. That could help you develop your own plan.

Newsagents need to deal with this disruptor.

UPDATE.

This morning I received this email, an example of how they upsell. I can see this would be appealing to a regular lottery customer.

Screen Shot 2016-09-13 at 9.22.23 AM

19 likes

Category: Competition · Lotteries · Newsagency challenges · Newsagency management · newsagency of the future

3 responses so far ↓

  • 1 Neil // Sep 13, 2016 at 8:44 AM

    I use ozlotteries.com

    So much easier. Sounds like it’s beats them both.

    2 likes

  • 2 Peter B // Sep 13, 2016 at 9:38 AM

    As you have said here many times Mark, there is no upside to Lotteries.

    With other retail groups, online and Tatts themselves being enemy to the newsagency chanel this new opposition reinforces your comments.

    0 likes

  • 3 Mark Fletcher // Sep 13, 2016 at 2:19 PM

    Neil I have tried Ozlotteries. In my opinion Lottoland is a better product.

    0 likes

Leave a Reply

Your email address will not be published. Required fields are marked *

Reload Image