tatts gets all possessive over counter space

From "The Age":

Tatts gets all possessive over counter space

* Mark Hawthorne
* June 11, 2008


TODAY marks the official launch of new gaming industry player Intralot in Victoria, with a party at Sumac in Docklands to spruik the company's wares.

But a turf war between Tatts Group and Intralot over instant lottery sales is already in full swing.

Under franchise agreements, Tatts owns the rights to counter space at newsagents and lottery outlets across the state. Greece-based Intralot has the licence to sell "scratchie" tickets and Keno from July 1, so some of that counter space will sit unused. Tatts has told Victorian newsagents not to install Intralot equipment on that empty counter space - or their lucrative Tattslotto machines will be switched off.

Mark Fletcher, who runs the newsXpress outlet at Forest Hill Chase, says he was given an ultimatum by his regional Tatts manager. "Within 24 hours of the Intralot equipment being installed, she turned up and said if it remained on their counter space, we wouldn't be allowed to sell Tatts products from July 1," Fletcher told Full Disclosure.

"She told me it was company policy. Apparently, Tatts owns part of my counter, although they don't pay me any rent. They have me over a barrel. They know how much revenue Tattslotto brings me. There is another outlet less than 400 metres away, so they can afford to switch me off."

The State Government's decision to end Tatts' 55-year monopoly on Victoria's lotteries, and award the rights to instant tickets to Intralot, has ignited a turf war between the gaming giants. Small-business operators are caught in the middle. Last month more than 500 angry lottery sellers turned up to greet Gaming Minister Tony Robinson at an industry function. He was booed off stage and heckled by the mob.

Much of the anger stems from Intralot's request for a $10,000 "establishment fee" to start selling its products.

Victorian newsagents claim that Intralot has threatened to install its equipment at nearby locations unless they agree to take the company's products.

But other newsagents, such as Fletcher's, are willing to give the new competitor a chance. "Tatts could have acted with grace and professionalism," he said. "Instead, they have acted like a jilted lover."

Tatts boss Dick McIlwain defended his company's policy on the location of Intralot products. "We have been very accommodating," McIlwain said. "One of the provisions of the new regulations is that we own the rights to our sales network. In the spirit of competition, we have allowed Intralot to enter those premises when we don't have to. All we ask is that they don't sell their product from an area that is clearly a Tatts lottery point. Where we sell our products. Where we have invested heavily in corporate branding and design. I mean, do you think McDonald's is going to let KFC start selling chicken from its restaurants?"