Zeal Group's lottery betting subsidiary myLotto24 has partnered Nparcel, a logistics solutions provider for Australian newsagents, to launch a new in-store deposit service.
The new payment service is to be rolled out across 1,200 newsagents throughout Australia this month, allowing customers to top up their myLotto24 accounts by visiting the stores.
Newsagents offering the solution will receive a 12 per cent commission on all in-store deposits, plus an additional 3 per cent from every online deposit made by a customer referred by a shop. MyLotto24 will also promote the deposit service online.
The operator claims that the service will not clash with the existing lottery products, provided by Tabcorp (formerly Tatts Group), offered in-store.
"As hundreds of thousands of customers will tell you, betting on international lotteries is a complementary add-on to traditional Australian lotteries," myLotto24 Australia country manager Mikael Sundelin said. "This pioneering partnership, a convergence of online and in-store, enables newsagents to benefit from lotto betting in a way that's been previously closed to them."
MyLotto24's partner in the venture, Nparcel, is owned and operated by the Victorian Newsagents Association (VANA), and aims to provide a range of services that allow stores to keep up to date with technological advances.
Nparcel general manager Chris Samartzis said the initiative is an exciting development for Australian newsagents.
"It expands the range of products available, giving customers more choice and yet another reason to visit our stores," he said. "This new service is good news for customers, for the mums and dads who own and manage newsagencies across the country, and for the thousands of people they employ."
The product is being rolled out despite the Australian government formulating plans to ban betting on lotteries. This has been driven in part by newsagents' fears of having the revenue from the sale of lottery products siphoned off my lotto betting operators such as myLotto24 and Lottoland.
Attempts by Lottoland to find a compromise, by allowing newsagents to offer lottery betting products in-store, was given short shrift by the Australian Lottery and Newsagents Association (ALNA).
However, Samartzis argued that the in-store payment system would remove the need for a ban on lottery betting. Instead, he said, it could push the government towards "a more balanced and considered piece of legislation that is not anti-competitive whilst ensuring consumer protection."
"The unintended consequences of a blanket ban will only serve to erect a monopoly with zero competition in the marketplace," he said. "As part of this new service, newsagents – who the proposed bill purportedly seeks to protect - will be able to benefit now and into the future from lottery opportunities that complement existing Australian lotteries in a regulated and disciplined environment."
Shares in myLotto24 parent company ZEAL Network SE (FRA:TIM) were trading up 1.10 per cent at €27.45 per share in Frankfurt Friday morning.