The U.K. National Lottery is out to bid for a new contract, and retailers are concerned the winner might focus on digital sales, siphoning business away from them. The contract went out to bid last August with contenders including Allwyn, Northern & Shell, Sisal and more.
The Grocer, a British magazine devoted to grocery sales, conducted a survey of 250 convenience stores that sell lottery tickets. A third were unsure how a new licensee will affect them, and more than 11 percent worry about the change. Results also give high grades to Camelot.
Camelot distributes lottery products at more than 44,000 retailers in the U.K., where retailers earn a 5 percent commission on drawings and six percent on scratch-offs along with one percent on some prizes paid in the outlet.
“Currently, the National Lottery does have an online presence, but I’ve heard that some of the bidders want to do a lot more online and from the point of view of community-based retailing, we need to protect bricks and mortar,” Deputy Vice President at the National Federation of Retailer Newsagents Jason Birks said.
A small number of respondents—5 percent—support a change from Camelot and a call for new products.
“I don’t think Camelot deserves another license, as for the last few years they have been very average with limited innovation, mediocre support for retailers with too much red tape,” a local retailer told The Grocer. “A new licensee should create a fresh approach and more energy.”
For its part, Camelot wants a balance between in-person and online sales.
“We fundamentally believe that the National Lottery’s success, which culminated in record sales last year, is reliant on building and maintaining a healthy retail channel,” the operator said in a statement.
