Victorian Lottery License Commission Review

Dear Member,

On Monday the 5th of March VANA met with representatives of Tabcorp and Tatts to continue discussions around commission growth and other determination outcomes.

VANA conveyed to Tabcorp/Tatts the implicit need for an authentic revenue share outcome that will deliver retailers real dollar growth by linking commission growth to sales.

Although Tatts have made some concessions such as scratchies fee removal and product evolution such as the Powerball restructure, VANA believes strongly in the growth of commissions to provide a more sustainable future for the franchisee long-term.

VANA outlined the shrinkage effect of headline revenue share, whereby the growth of online sales has contributed to greater returns for the franchisor whilst a squeeze effect has engulfed the franchisee with a lower share of the headline sales.

We believe that there is some goodwill on behalf of Tabcorp/Tatts to alleviate some of these structural dynamics that have eroded margin over time and we look forward to a more balanced outcome in the near future as the new license takes effect from the 1st of July 2018.

As we receive a more detailed determination from Tabcorp/Tatts we will keep members informed.

Regards

Chris Samartzis | General Manager
VANA Ltd