By the middle of this year, supermarkets such as Coles and Woolworths will be able to sell Lotto tickets and scratchies in what could prove to be another body blow to local newsagents.

Blair's Newsagency owner Peter Tompsett is disappointed by the prospect of the large supermarkets taking more control than what they already have.

"The government sold it to them so there's not a lot we can do now," he said. "There should have been more made of it when it actually happened, but I don't feel it suits their business model."

There are around 1300 newsagents throughout New South Wales of which 1200 sell lottery products while another 300 small businesses are also lottery agents.

Mr Tompsett was confident it wouldn't spell the end for his business.

"They make up 40 to 60 per cent of newsagents' income," he said. "We've been here since 1900 and we're not going anywhere.

"People need to be aware if they don't support their local retailer they'll be left with nothing but Coles and Woolworths. They need to give their local retailer a go."

He likened the possibility of Coles and Woolworths selling scratchies as similar to when the internet first took off.

"Those sales dropped off after a while so this will probably be the same, but you've got to adapt and change your business," he said.

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