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Lotto receivers concerned over comments by Swedish consultant
by David Kelleher
Statements made by a Swedish consultant last week on lotto
have been a cause of concern for the 190 lotto receivers in
Malta.
In an interview last week with The Malta Business Weekly, Richard
Frigren, a consultant and an honorary president of Intertoto,
made a number of statements that “caused a lot of fear
among lotto receivers” who felt their livelihood could
be threatened.
The resident of the Lotto Receivers Union, Arthur Rossi, told
The Malta Business Weekly that the union had been inundated
with calls from members who felt that comments made by Mr Frigren
– who is also a consultant to the First Lottery Consortium,
one of three consortia that is bidding to take over the management
of the Public Lotto Department – implied that they could
find themselves out of a job because ticket sales would be made
available from tobacconists or stationers. The also feared that
widening the seller base would decrease their income, which
is solely based on commission.
“There was considerable concern among our members after
the interview was published,” Mr Rossi said, adding that
“many of them felt insecure about their future prospects.”
However, Mr Rossi said Mr Frigren had been too hasty in passing
those comments and it was clear that he had not read the Request
for Proposals (RFP), which guaranteed that lotto receivers had
to be consulted in every decision taken.
He said that in correspondence with the Minister of Finance,
the LRU and the lotto receivers had been assured that any changes
would have to be vetted by the minister before a decision was
taken.
“Apart from the minister’s assurances, the RFP guarantees
that all 190 lotto receivers will be absorbed by the consortium
that wins the tender,” Mr Rossi said.
According to the RFP, “Due and favourable consideration
will be given to plans aimed at integrating in the most appropriate
manner the role of existing lotto receivers”. Furthermore,
the applicant consortia, “must ensure to make the necessary
arrangements with the existing lotto receivers as to their engagement
as National Lottery sellers, rates of commission, and other
conditions pertaining to their engagement”.
Mr Frigren said in the interview that he believes there is space
for new games for the local market. “These could include
oddset, bingo, chino and new versions of instant lotteries,
sport pools and also Video Lottery Terminals.” He also
believes that the structure of retailing in Malta does not follow
the patterns and systems of central and northern Europe.
“Lotto booths are not always found in the places frequented
by a lot of people. This is not the way it is normally done.
It would be better to be present in malls, shopping centres
and in places which are frequented by many people such as a
tobacconist or stationery.” Mr Frigren said there were
a lot of traditions in the way tickets were sold but added that
new games would require better marketing. “We have to make
it easy for people not willing to walk 300 metres to be able
to purchase tickets,” he said.
Mr Rossi, however, questioned this reasoning, describing it
as provocative in their regard, and giving the impression that
lotto receivers will no longer be needed as sales of tickets
will take place solely in tobacconists or stationers.
“We are in favour of privatisation and will consider all
efforts to improve the lotto department and its role in Malta.
However, we insist and this is confirmed in the RFP, that we
have to be involved in all stages of negotiations,” Paul
Astarita, secretary of the lotto receivers cooperative.
“We know what the customer wants. There are a number of
cultural aspects that one has to take into consideration. The
lotto department adds nearly Lm10m to the consolidated fund.
It will not be an easy task for whichever consortium to meet
these profit levels without our input. We must be involved,”
Mr Rossi added.
With regards to Mr Frigren’s suggestion that sales of tickets
should also take place in malls, shopping centres and areas
frequented by many people, Mr Rossi said that from their experience
this does not work.
“We have outlets at the airport and at the Embassy complex
in Valletta. These are two areas frequented by many however
this does not mean that they are doing excellent business, on
the contrary,” Mr Rossi said.
“As things are, the local playing public is well served
and the service goes beyond just selling tickets. Receivers
build up a rapport with clients, something that will not necessarily
happen if tickets are sold from a stationer,” Mr Astarita
said.
“We are all in favour of privatisation, and welcome any
positive change as long as we are involved in the negotiations.
The government is conscious of this need and this is reflected
in the RFP. That is why our members were so surprised to read
Mr Frigren’s comments in The Malta Business Weekly, even
more so since he
is a consultant to one of the consortia,” Mr Rossi
concluded.
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