Folks at The Lottery Corporation will deny it. But the lottery giant’s recent moves look less like coincidence and more like a coordinated push to pull shoppers away from retail counters and into its own online ecosystem. For newsagents and lottery agents who spent decades building these customer relationships, it is not a comfortable pattern to watch.
The QR code addition to in-store tickets is the obvious one. TLC calls it a convenience feature, players can check results or store tickets digitally. But scan the code and you land on a website or app with a clear pitch to create an account. That is a customer acquisition funnel. The foot traffic belongs to the retailer. The digital asset goes to TLC.
Once a customer registers online, the local newsagent is out of the loop. TLC owns the data, the transaction history, and the direct marketing channel. The retailer spent years cultivating that customer. TLC collects the benefit.
The margin picture
Pricing tells the same story. In-store tickets show the base price and retail commission as separate line items. Online, only the total appears. The commission breakdown vanishes.
TLC’s ASX reporting explains why that matters. When a customer buys direct through the app or website, TLC absorbs the commission that would otherwise go to the agent — around 9% to 10% per transaction. Scale that across millions of converted players and the retail network starts to look like a cost rather than a channel.
What this means for newsagents
Retailers are carrying rising costs everywhere. Rent is up. Wages are up. Lottery traffic matters precisely because it drives cross-sell into gifts, collectibles, and stationery — the categories with real margin.
When TLC systematically converts those customers, it erodes the economics of the very stores that carry its products. Online syndicates get offered as a consolation, but they do not replace a long-term retail client. A serious conversation about channel conflict is well overdue.
My advice
There is no upside for the lottery category except in WA where the state government retains ownership and is proactive in support for the channel and its role.
- Do the bare minimum to retain your contract.
- Build out your business so it is not reliant on lotteries.
- If your business would not survive losing lotteries, make point 2 above your top priority.
- Lobby your state politicians as they control the lottery licence.
Ultimately, TLC’s digital push forces brick-and-mortar agents to fund their own replacement by supplying the foot traffic TLC is actively converting online. Until retail partnerships are genuinely protected, newsagents are left holding the bag while the lottery giant pockets the margins. Unless, of course, you put your business first.
This is a big problem.
For years then have demanded our space and time and stopped us from reasonably growing our business and now they are taking our customers. We have been played.
they are certainly focused on moving customer’s online at our expense but we have to move into other retail space and not rely as much on small margin categories… we introduce a new line last month that equalled lotto commission that isn’t know to be stock from traditional newsagents we all need to focus on evolution of our businesses before its to late which is what Mark has said for years ..
The paint is barely dry on the new fit out and the value drops thanks to this qr code thing. I know we should have acted sooner and there’s no point crying over that spilt milk. We’ve all got to move urgently like Roger says.
TLC is doing what they need to for their shareholders, the only group they serve. My core issue with them is the commercial constraints they place on newsagents that deny newsagents the opportunity to adequately serve the their own business needs. It’s unfair.
One of the smartest things we ever did was to move our counter to the back of our store so that customers have to walk through a lot of our gift and homewares to be served (and it’s not a straight line from the door to the counter either). There’s nothing better than the husband walking in to buy a lotto ticket and the wife leaving with a $250 leather handbag. Yes it does happen.