THE NSW government has guaranteed lottery products will not be distributed by large supermarket chains Coles and Woolworths for another three years, but a Dubbo newsagent said the decision had not fixed the problem.
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NSW Treasurer Andrew Constance and Tatts Group chief executive Robbie Cooke have signed a memorandum of understanding (MOU) containing the guarantee.
Dubbo newsagent, Peter Snare of Snares Talbragar Newsagency echoed comments of Newsagents Association of NSW and ACT (NANA) chief executive Andrew Packham.
Mr Packham said he was "astounded" the government would sign an agreement with Tatts when NANA was still in negotiations with them.
The Snares Newsagency owner agreed nothing good could come of the decision.
"It's not a fix, it's just prolonging things a bit and it's very disappointing," he said.
"It's a typical political decision where they say they've fixed it, but they've just moved it along.
"We want definite terms and conditions of the agreement and what's happening because we don't know what's happening."
The MOU does not include fuel stations owned by the supermarkets and Mr Snare said the introduction of Lotto to supermarkets would "squash our industry".
"It's already mayhem in the supermarkets, it will be even worse if this comes in," he said.
"Supermarkets already have cards, magazines and stationery, soon they'll have everything we do.
"Our newsagency brings a lot of people to Talbragar Street, so this not only affects us, but it affects neighbouring businesses too.
"If I lose 50 per cent of shop trade from this decision then the shop next to me could too and it could have a devastating effect on small businesses right along the shopfront."
Mr Snare said the only people he believed would come out on top were the big guys.
"I can't see this benefiting anyone but Tatts," he said.
"It's a greed thing, but it's also business.
"But we'll continue to fight because big and especially small businesses will definitely be affected by this."