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Has an appeal lodged by an existing lottery retailer to Tabcorp or Tatts before them against a new lottery outlet ever succeeded

Mark Fletcher
November 9th, 2020 · 8 Comments

I heard from a newsagent last week of another appeal lost, with Tabcorp approving a new outlet nearby, another of the fuel outlets that run 24/7.

The newsagent is gutted. They lodged an excellent appeal. Their case was well made and backed by evidence. Their sales numbers are excellent.

Based on my knowledge of the situation, I expect that the new outlet will drive the existing outlet to investor time to maintain (or grow) lottery sales, meaning the new outlet increases operating costs for the existing outlet.

I see no sense in this particular decision. I have no confidence whatsoever that the folks at Tabcorp actually considered the appeal from the existing retailer.

5 likes

Category: Ethics · Lotteries · Social responsibility

8 responses so far ↓

  • 1 David // Nov 9, 2020 at 6:51 AM

    I appealed and failed. They opened the outlet. My sales dropped 10%. I clawed some back but it cost me more time.

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  • 2 Graeme Day // Nov 9, 2020 at 7:14 AM

    David, this is bad news. In NSW Both NANA NSW and ALNA NATIONAL have been and ongoing fighting Tabcorp with everything they can
    Truth is Tabcorp is in trouble . Rumors have it P.E is looking at the wager side of the business with this side having been closed retail Tab agencies and Hotel outlets Tabcorp Lost $100m on the Melbournce Cup day alone.
    No excuse for not looking after the retail channel especially when its obvious they are desparate in giving outlet to Servos, IGA’s etc that have the lowest rankings of all. It smacks of the same treatment with magazines and the Post Office.
    Desparate is what desparate does They both will claim incremental sales however they won’t admit that the pie shrunk
    Lotteries are carrying Tabcorp but Tabcorp is not fostering the provider Associations have lobbied Politicans State and Federal over this.
    Although it won’t the trick hoever a petition through newsagents from their customers would be a much better one than the Rudd fizzle wwhich has got huge reaction for a lost cause.
    We need to re-think and act our industry for it is being pulled apart.

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  • 3 Graeme Day // Nov 9, 2020 at 10:04 AM

    In answer to your Blog heading- Yes! in Albion Park NSW . Won appeal with support from NANA however special circumstances were substantial within the process nonetheless NANA helped as the newsagent was a menberSince been sold and not revisited.

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  • 4 Mark Fletcher // Nov 9, 2020 at 11:45 AM

    I should have date qualified the headline – in the last 5 years, maybe even in the last 3 years, as it is recent history that matters most here.

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  • 5 Graeme Day // Nov 9, 2020 at 12:05 PM

    Sorry I should have too. 2 months ago. sold Challenged successfully 18 months ago.

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  • 6 Jim // Nov 9, 2020 at 5:09 PM

    I have challenged a new outlet licence unsuccessfully before. Tatts produced an ACCC undertaking from over 20 years ago citing a potential breach of the Trade Practices Act if it did not allow it to proceed. I rook it as a clear message that there is no implied territory and that there is little to no goodwill in the licence.

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  • 7 Graeme Day // Nov 9, 2020 at 6:27 PM

    Jim correct there is no implied territory and no Goodwill in any Licenense. There is market factors of intrinsic value that are recognised by lending institutions and Banks they work on KPI’s or P/earning ratios for the valuations of the business.
    I apply all three different methods to arrive at what is believable is and is the likely acheivable sustainable profit for(very conditional today) especially for the next 5 years ma.

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  • 8 Steve // Nov 18, 2020 at 3:22 PM

    I am hearing that each of the proposed new Euro outlets have been approved. Whilst I am not one of the unlucky franchisees to be located in close proximity to one of the new outlets, calling a spade a spade this is nothing more than Tabcorp attempting to accelerate the rate of growth of their online revenue by weakening the existing bricks and mortar retail network.

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