Once the sole domain of newsagents, the battle for the lucrative lotto business intensified last week after Woolworths boss Grant O’Brien revealed Tatts had approached them to sell lottery tickets.

Tamworth’s six newsagencies are carrying petitions asking customers to oppose the move, which stems back to the former state government’s 2010 decision to sell the publically-owned NSW Lotteries to Tatts.

Written into the contract was a five-year moratorium on Tatts moving into new areas of business, but that clause expires on April 1 next year.

“Lotto is an integral part of our foot flow traffic and if we lose that, 75 per cent of local newsagencies will close down,” West Tamworth Newsagency owner Sharon Maloney said.

“People who buy lotto tickets often buy a magazine, newspaper or drink as well and to lose that would send us to the wall.”

Inflaming matters is a demand by Tatts for all newsagents to refurbish their lottery ticket selling area by next April to bring them into line with the company’s new branding strategy.

Ms Maloney said refurbishments would start at $35,000.

Local newsagents will attend a crisis meeting with the Newsagents Association of NSW and ACT in Tamworth on December 8 to discuss the issue.

Minister for Small Business John Barilaro said the government had inherited the “dud deal” from the previous administration.

“Make no mistake, this is the direct result of a dud deal done by the previous Labor government in an effort to plug a budget black hole,” Mr Barilaro said.

“As minister for small business, it is my job to go into bat for the mums and dads running newsagencies all over this state, and I fully intend to do that.

“Last week, I met with the Newsagents Association and gave them an undertaking to work together to get the best deal for small businesses.”