Lottoland’s Olive Branch To Aussie Newsagents Is Rejected
The animosity between Lottoland and Australia based lottery operators and newsagents shows no signs of relenting. Both sides have been in a very ugly and expensive marketing campaign aimed at discrediting each other. Lottoland has over 600k lottery customers down under and is seen as a real threat to the Tatts Group and by the Australian Lottery and Newsagent Association (ALNA).
Added to that are the growing number of states that have announced plans to implement legislation that will ban insurance based lottery operators like that of lottoland. In an effort to gain support and silence the critics Lottoland has offered what it call a “world-first” partnership model to the ALNA by offering them 10 percent revenue share from every bet one of their customers make with Lottoland. Under the proposal punters would select a local newsagent where they bet with lottoland. That chosen newsagent would receive a 10 percent cut.
However this olive branch has been rejected and even dubbed disingenuous by the ALNA CEO Adam Joy. The ALNA have run an aggressive media campaign backed by Tatts Group to the sum of $5m. Their main message is that private online lotteries like Lottoland are misleading the public with their synthetic like or fake lotteries business models and are hurting the local economy in that they are not giving anything back from their revenues to community projects like the traditional state run lottery operators.
CEO of lottoland Luke Brill said that the revenue share model they created was a result of listening to the newsagents and realize the need to work together. Brill said:” We will take a hit to our margin but we appreciate that we need to act and listen to the newsagents and consumers and this is our attempt at doing that. We aren’t the big, bad enemy. We are happy to work with newsagents and compensate them and help them transition from offline to online.”
Joy went on to question the proposed revenue share of the Lottoland proposal by and said that on their model the newsagents would only get 10 cents on a $1 ticker and payments would be made quarterly and in arrears. Not stopping there Joy said, “Lottoland has not acted in a way to date that you would call reputable or transparent.”