The ACT opposition will move to restrict sales of scratchies and lottery tickets to small businesses in the wake of a surprise deal struck between NSW Lotteries and Woolworths petrol stations.
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Tatts Group, which operates NSW Lotteries, said last week it had entered into franchise agreements for five Woolworths petrol stations in Canberra to sell its full range of lottery products as soon as September 7.
The announcement was met with surprise from Gaming Minister Joy Burch, who has asked the ACT Gambling and Racing Commission to urgently investigate.
It has also raised the ire of anti-gambling groups and angered newsagency owners throughout the capital who feared the shift would cut into sales and jeopardise their businesses.
Opposition small business spokesman Andrew Wall will table draft legislation in the Legislative Assembly next month that would mean only businesses with 35 or fewer full-time employees could sell or promote lottery products in the ACT.
"Lottery products make up a huge percentage of business for ACT newsagents.
"The primary intention of this legislation is to maintain the status quo and ensure newsagents and dedicated kiosks remain the first point of sale for lottery products."
The NSW government in February struck a deal with Tatts that banned the sale of lottery products in the Coles and Woolworths supermarkets for the next five years.
The memorandum of understanding meant newsagents and convenience stores in NSW would have exclusive selling rights to lottery products until 2018.
That deal didn't include service stations owned by the two supermarket giants or other retailers, who would be allowed to sell the products from April this year.
Mr Wall said the end of the NSW agreement had sounded warning bells and highlighted there weren't any similar protections or restrictions on who could sell lottery products in the ACT.
He said the bill, set to be introduced on September 16, was modelled on similar legislation enacted in Queensland and would ensure that newsagency lottery sales would not be overtaken by big supermarket chains in the ACT.
"It means in the large part that lottery tickets will only be sold by small businesses, not by large multinational companies that are more concerned by the bottom line," he said.
Mr Wall echoed concerns from the newsagents' lobby, which has pushed for similar legislation in the ACT, that petrol station operators and staff might not offer the same expertise or care when selling the gambling products.
Ms Burch said while the government was aware of laws in other jurisdictions that limited sales based on staff numbers, its preferred approach would focus on harm minimisation.
"The ACT Government strongly believes in competitive markets," she said.
"Any outlet selling lottery products must meet all of our existing – and very strict – regulations, including the training of staff and provision of gambling support information on site."
Ms Burch has also asked the commission to explore regulations that would limit the hours lottery products could be sold to "create a level playing field" with existing sellers.
NSW Lotteries said the new deal applied only to fuel outlets and there were no plans to expand into Woolworths supermarkets.
The company said licensing and regulatory requirements in NSW and the ACT and the petrol outlets would be bound by the same gaming requirements and training as regular retailers.
It has not yet confirmed which five petrol stations will carry the products.
