BATTLE FOR LOTTERY PAWNS
Sellers caught in the crossfire as two new players prepare to enter multi-billion-dollar industry
AS the local lottery war heats up with two new players set to enter the multi-billion-dollar industry in days, a major fight is brewing over the services of the retailers who sell the games.
The sole player in the market at present, Supreme Ventures Limited (SVL), has some 1,200 retailers across the island with the looming new entrants, Mahoe Gaming and Goodwill Gaming Enterprise, trying to establish their retail networks.
The new players have reportedly approached some SVL retailers to sell their products at already established locations and that has triggered the latest clash.
Last week some lottery retailers told the Jamaica Observer that they have been threatened by SVL that they could be kicked off its network if they sell for any competitor.
But executive chairman of the Supreme Ventures Group Gary Peart has rejected that claim as he told the Sunday Observer that it is people linked to the potential competitors who have been bullying his retailers into selling their games.
“Mahoe and Goodwill are here and have started installation of their terminals. Before this, through various mediums, we were advised that we must know what we are doing or our actions will trigger reactions from SVL,” charged one retailer who asked not to be named.
“The gaming providers, Mahoe, Goodwill, and SVL, are direct competitors. Who stays or who goes is their responsibility and we have no part to play in that. We only want to continue our role as it has been for years,” declared the retailer.
He alleged that SVL has told its retailers that “if you are not with us, then you are against us” and that those who engage the competitors “must be prepared to face consequences”.
According to another retailer, SVL has been very clear that, “If you entertain the competition they will see that as your intent to end your relationship with them. The company has further stated that it would not reveal anything to us until it could see what the competition is doing.”
Responding to the allegations, Peart told the Sunday Observer that SVL has never threatened a retailer and the company is not worried that some of its retailers might sell the competitors’ games.
“That is their choice. Retailers have a choice to take on other equipment. This matter was sorted out when SVL and Jamaica Lottery were in the market at the same time and the Fair Trading Commission ruled that a retailer can take more than one piece of equipment, which is why the allegation [from some retailers] doesn’t make sense,” said Peart.
He said he has heard allegations of the potential competitors threatening SVL retailers.
“But I am not surprised, because the reality is that SVL has developed its current network so we have more experience in running a lottery business, and if the competition has to set up a separate network it would be much more expensive.
“So the cheapest thing for them is to try and convince — and I put that in italics — convince an existing retailer to take their machines. But the reality is that they should really leave the SVL network alone. They should come in and build their own network,” added Peart.
According to Peart, SVL’S message to its retailers is not to worry about any possible fall-off in business when the new players enter the market.
“Supreme has been in partnership with these retailers for a very long time, some of them for in excess of 15 years, and we have invested a lot of money in these retailers, and we have additional businesses that we are putting into their shops.
“We are pretty confident that whoever turns up beside, around, or wherever, if they turn up, our retailers should not be worried because they will actually make more money,” declared Peart.
Not satisfied with the assurances from Peart, a group of lottery sellers are moving to form an association to look out for their interests while the big players battle.
“The Associated Gaming Retailers of Jamaica has been formed and we have been working in the interest of us all — members and non-members — but we need more people. We need a constant presence in the industry,” declared the retailer.
“We are not against SVL, nor are we supporting any of the new entrants, we are pro-business and the three players in the market should compete against each other and leave us alone as we are just offering a service,” added another retailer.