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Lotterywest Ends Agreements With Seven Perth Retailers Over Illegal Tobacco and Vapes

Lotterywest’s 2025 action removed seven Perth-area stores from its retail network. It did not revoke their tobacco licences or close the shops; WA’s later statutory closure powers are separate.
From TheFinanceBase Team3 min to read
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Lotterywest terminated the retail agreements of seven Perth-area stores in November 2025 after an Australian Council on Smoking and Health (ACOSH) audit identified them as selling illegal tobacco or vapes. The stores could no longer sell Lotterywest games. This was a Lotterywest network decision—not cancellation of the stores’ government tobacco licences or an order closing the shops.

What Lotterywest did in November 2025

ABC News reported on 28 November 2025 that Lotterywest had ended the agreements of seven metropolitan Perth retailers identified in the audit. Lotterywest’s action meant those outlets lost the right to sell its games; it did not, by itself, close their premises.

Lotterywest CEO Colin Smith told ABC News the organisation had “zero tolerance to anyone not abiding by the laws” and said, “What we can’t have is illegal activity in our retailer network.” Smith also said he did not see an ability for the seven stores to reapply under the conditions in place at the time. Those were his statements in the November 2025 report, not an independent or current determination of each store’s status. ABC News’ report on the terminations

What “licences” means in the headline

Lotterywest did not revoke the government-issued tobacco seller licences. The ABC report’s headline used “licences,” but described Lotterywest terminating the stores’ retail agreements. Lotterywest retailers operate under a formal agreement with the organisation; ending it removes their Lotterywest game-selling rights. Tobacco licensing is a separate matter governed by Western Australian law. Lotterywest retailer FAQs

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Action Who acts Legal or contractual basis Effect
Lotterywest agreement termination, reported in November 2025 Lotterywest Retailer agreement The outlet can no longer sell Lotterywest games; the action does not itself close the shop.
WA premises closure order, under laws in force in 2026 Relevant authorities; a long-term order requires a court Statutory enforcement powers The premises named in the order must close for the order’s duration.

What the ACOSH audit found—and what it did not

As reported by ABC News, ACOSH audited 103 retail outlets across 56 Perth suburbs and found about half selling illegal tobacco or vapes. That result describes the outlets in the audit; it is not a measure of the share of all Perth retailers involved in illegal sales. ACOSH CEO Laura Hunter said, “There are retailers all over Western Australia selling deadly and addictive products in broad daylight,” and called Lotterywest’s action positive. ABC News’ account of the audit and responses

WA’s current enforcement powers are different

The 2025 report said officials, including police, could not then immediately shut the stores despite the alleged illegal activity. That is historical context, not the current position. Western Australia’s strengthened tobacco and vaping laws took effect in 2026. Current Department of Health guidance says authorities may close premises involved in storing, selling or supplying illicit products. An order applies to the entire premises it names—not just a particular counter or product range. WA Department of Health: illicit tobacco and vaping products

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Products covered by the guidance

The Department says illicit tobacco can include tobacco that does not meet Commonwealth packaging, labelling, contents or health-warning rules, loose unpackaged tobacco or cigarettes, and illegally imported tobacco. Its guidance also identifies disposable vapes and other vaping products supplied without a prescription as illicit vaping products.

How long a closure order can last

Order type Maximum duration in Department of Health guidance Who orders it
Interim closure Up to 72 hours Authorities under the statutory process
Short-term closure Up to 90 days Authorities under the statutory process
Long-term closure Up to 12 months A court

The Department says a closure order does not automatically cancel a tobacco seller’s licence or end a lease. Those consequences are separate from closing a premises, just as a Lotterywest agreement termination is separate from both.

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Penalties depend on the offence

For possession of a large commercial quantity of illegal tobacco or vaping products, the Department’s guidance lists maximum penalties of up to $4.2 million for an individual or $21 million for a company, and up to 15 years’ imprisonment. These are maximums for the specified large-quantity offence, not penalties that automatically apply to every breach. WA Department of Health guidance on illicit products and penalties

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Separate rules for tobacco sellers

In Western Australia, a tobacco seller must hold a current tobacco licence and must not sell tobacco to anyone under 18. Department of Health guidance also sets requirements concerning product display, signage, employee age and compliant products. These government requirements are distinct from Lotterywest’s conditions for selling its games. WA Department of Health: tobacco retailers and licensing

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