The 40-year lease of NSW lotteries to the privately owned Tatts Group in 2010, will end on April 1. Many newsagents and lottery outlets have been waiting with baited breath to find out whether distribution will expand into supermarket chains Coles and Woolworths, at the end of the the five-year moratorium.
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A Memorandum of Understanding (MOU) was signed in January by NSW Treasurer Andrew Constance and Tatts Group chief executive Robbie Cooke, guaranteeing products will not be distributed until early 2018.
The MOU also proposes to give newsagents and convenience stores selling lottery products up to $10,000 each, a total of $15 million in financial assistance.
Yass Newsagency owners, Merren and Roger Gregg are one of many licensed newsagents that are calling the move a pre-election ploy.
“The document, as we see it, is just an understanding without contractual worth,” Mr Gregg said.
“Although it is miles better than the alternative, it doesn’t actually solve any problems, it just postpones it.”
The fact that Tatts has indicated it wants to distribute lottery products through retail fuel outlets from April, is also of concern for the Greggs.
Mrs Gregg described the MOU as "sloppy concrete that hasn’t yet been set".
“It is quite easy for them to turn around and change the agreement, as there doesn’t seem to be any legal contracts involved,” she said.
The Greggs are concerned that the ownership of the lottery franchise does not give them any territorial rights and the Newsagency industry could be facing ruin.
“Territory is definitely the biggest problem, with most franchises it comes with a certain amount of territory,” Mr Gregg said.
“But the lottery doesn’t allow for that. It is difficult to pour money into something that poses the possibility of not getting any return.”
The Greggs say they will not start "crystal balling" but will wait to see what Tatts decides.
They hope the Newsagents Association is successful in its fight to hold onto its exclusive rights.