Beleaguered online lottery betting operator Lottoland is waiting for the tides to turn after a group of Australian newsagents agreed to consider its proposal for a profit-sharing agreement.
Lottoland found an unlikely ally in the form of The Newsagents Association of NSW and ACT (NANA) in the remaining weeks before it’s evicted from the land down under. In a statement, NANA said it will continue to negotiate with Lottoland and other organizations for the benefit of its members. If a compromise can’t be reached, NANA will walk away from the negotiating table.
“NANA is committed to continuing to work in the best interests of its Members. Dismissing any genuine offer from any organization to work with Newsagents closes the gate and will potentially cost newsagents income,” the group said in a statement.
Earlier this month, Lottoland published a full-page newspaper advertisement seeking a discussion with newsagents for a win-win solution for both parties in the wake of the Australian government’s decision to ban online betting on lotteries and keno.
The ad was a letter addressed to newsagents penned by Lottoland CEO Luke Brill, who offered them 20 percent of the profits generated from every bet they refer to the online gambling firm. Newsagents may earn thousands of additional dollars from the proposal, according Brill.
The Australian Lottery and Newsagents Association (ALNA), the main representative body of the country’s newsagents, quickly turned down the offer, which it described as nothing but a PR maneuver.
However, Lottoland’s offer to NANA might be different from the newspaper advert. In its newsletter to members, NANA CEO Ian Booth said that Lottoland’s offer is now based on a percentage of sales.
Booth said news agents could earn more from Lottoland’s offer than the percentages newsagents and other lottery outlets receive in commissions from Australian operator Tatts Group’s lottery products.
In agreeing to talk with Lottoland, NANA said they are concerned with the possible monopoly of Tatts that would have “enormous consequences for the news agents.” The group contends that a monopoly isn’t good for either newsagents or consumers, while taking a swipe at other newsagent groups that NANA said had allowed themselves to become a mouthpiece of Tatts.
“Newsagents are sick and tired of being used as cannon fodder by the likes of Tatts Group Lotteries and associations that act as their mouthpiece. NANA is working with those Newsagents to work out what will be best for them,” group said.
