❓ Mr. Johnston questions the Minister for Small Business about Lotterywest retailer commissions, specifically regarding approaches for commission increases and the impact of online sales. The Minister acknowledges the issue and the challenges faced by newsagents.
AnsweredQoN 1007Legislative Assembly
QuestionView source ↗
LOTTERYWEST
RETAILER COMMISSIONS
1007. Mr W.J. JOHNSTON to the
Minister for Small Business:
I refer to the network of Lotterywest agents in Western
Australia.
(1) How many
Lotterywest agents have approached the minister or the Small Business
Development Corporation, regarding an increase to retailer commissions?
(2) Is the
minister aware that the Lotterywest retailer commissions were last increased by
the former Labor government?
(3) Does the
minister support an increase in Lotterywest retailer commissions?
RETAILER COMMISSIONS
1007. Mr W.J. JOHNSTON to the
Minister for Small Business:
I refer to the network of Lotterywest agents in Western
Australia.
(1) How many
Lotterywest agents have approached the minister or the Small Business
Development Corporation, regarding an increase to retailer commissions?
(2) Is the
minister aware that the Lotterywest retailer commissions were last increased by
the former Labor government?
(3) Does the
minister support an increase in Lotterywest retailer commissions?
AnswerView source ↗
I thank the
member for Cannington for the question.
(1)–(3) I
have not been approached and I do not think my office has been approached as
yet by an awful lot of agents—perhaps one or two have raised it with
me. We are essentially talking about newsagents that sell Lotterywest tickets.
I understand the way the system works. As for the Small Business Commissioner,
I would have to seek advice to answer that question for the member for
Cannington. He is around today so I am sure it will not take too long to get
the member an answer to that question. The way it works is that newsagents sell
lottery tickets and are paid a commission that is part of their income from
people who walk into a newsagent and buy a lotto ticket, whichever product it
is that Lotterywest might be selling and whichever product it is that the
consumer buys. Effectively, this is a bread-and-butter kind of product for many
small businesses such as newsagents who sell anything. People go into the
newsagent to buy a lottery ticket. There is not an awful lot of margin in it;
in fact, they are almost cost neutral. But customers buy other things while
they are there that have a higher profit margin such as magazines and
stationery. The lottery ticket is effectively the drawcard into the newsagent.
The future will be challenging because Lotterywest now allows people to
purchase tickets online and that is commission that newsagents do not receive.
Mr
M.P. Murray : And the government has lifted the threshold as well.
Mr
J.M. FRANCIS : There is a threshold on how much an individual can gamble
online per week using Lotterywest products. I have spoken in here before about
issues such as the Totalisator Agency Board. As we move towards more people
buying lottery tickets and gambling online with different products, it is
something that Lotterywest will have to address. Lotterywest will put out a
number of disincentives for people to buy a lottery ticket at newsagents and to
do it online; we realise that. It is something that we will look at and about
which I am very aware.
member for Cannington for the question.
(1)–(3) I
have not been approached and I do not think my office has been approached as
yet by an awful lot of agents—perhaps one or two have raised it with
me. We are essentially talking about newsagents that sell Lotterywest tickets.
I understand the way the system works. As for the Small Business Commissioner,
I would have to seek advice to answer that question for the member for
Cannington. He is around today so I am sure it will not take too long to get
the member an answer to that question. The way it works is that newsagents sell
lottery tickets and are paid a commission that is part of their income from
people who walk into a newsagent and buy a lotto ticket, whichever product it
is that Lotterywest might be selling and whichever product it is that the
consumer buys. Effectively, this is a bread-and-butter kind of product for many
small businesses such as newsagents who sell anything. People go into the
newsagent to buy a lottery ticket. There is not an awful lot of margin in it;
in fact, they are almost cost neutral. But customers buy other things while
they are there that have a higher profit margin such as magazines and
stationery. The lottery ticket is effectively the drawcard into the newsagent.
The future will be challenging because Lotterywest now allows people to
purchase tickets online and that is commission that newsagents do not receive.
Mr
M.P. Murray : And the government has lifted the threshold as well.
Mr
J.M. FRANCIS : There is a threshold on how much an individual can gamble
online per week using Lotterywest products. I have spoken in here before about
issues such as the Totalisator Agency Board. As we move towards more people
buying lottery tickets and gambling online with different products, it is
something that Lotterywest will have to address. Lotterywest will put out a
number of disincentives for people to buy a lottery ticket at newsagents and to
do it online; we realise that. It is something that we will look at and about
which I am very aware.
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