Lotterywest lifts retailer commissions

The 500 retail businesses that earned $63 million selling Lotterywest products last year can look forward to higher incomes after the state government agreed to increase their gross commission.

The gross commission will increase from 9 per cent to 10 per cent.

Figures from Lotterywest's 2018 annual report show the 'net' commission paid last year was closer to 8.2 per cent - that figure is based on the payment of $63.2 million in retailer commissions on total sales through retailers of $773 million.

Nonetheless, the incease was welcomed by the Australian Lottery and Newsagents Association, with chief executive Ben Kearney saying the improvement in retailer profitability would solidify the future of the industry.

“This is the result of years of Premier Mark McGowan listening carefully to our retailers and Lotterywest and working closely with ALNA and the small businesses we represent,” Mr Kearney said.

Mr McGowan said the higher commissions were part of a bigger package.

“I know retailers have done it tough the past few years, which is why I asked Lotterywest to investigate what could be done to boost sales and create long-term sustainability,” he said.

Mr McGowan said 10 per cent would be the highest retailer commission in Australia.

Other initiatives include opportunities for retailers to benefit from online growth through a proposed ‘omnichannel approach’, which will share online commission for member purchases with the retailers who sign them up.

Lotterywest plans targeted promotions to drive sales and enhanced digital communication initiatives.

It also plans to fund extra support services for retailers including mentoring, sales coaching and player insights.

Lotterywest’s 2018 annual report said 503 retailers sold its gaming products.

This included 395 newsagents, 40 kiosks and 37 supermarkets.

It disclosed that 90.5 per cent of sales were through retailers, with the balance online.

Lotterywest had total sales last year of $855 million, an increase of 3.4 per cent.