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

Tabcorp announces plans to de-merge lotteries

Tabcorp this morning announced plans to de-merge the lotteries and keno business from the gaming company.

This move, which is expected to be completed mid 2022, would result in an organisation more focussed and reliant on lotteries revenue. I suspect this would see pressure on the retail network increase.

With digital sales accounting now for 32.1% of lotteries revenue, smart management would be focussed on driving digital sales as I suspect the cost to the business of digital sales is less than the cost of over the counter sales.

To any retailer who asks me I say – don’t run your business such that it is reliant on lottery revenue for survival. The less you rely on lottery revenue and lottery shopper foot traffic the brighter opportunities for your business.

The bottom lime of today’s Tabcorp announcement is continued disruption for lottery retailers.

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Lotteries

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