The Gibralter-based betting agency is in the crosshairs of the state government, because of its affect on local lottery sales, and the revenue of newsagents.
In what would be a huge boon for local newsagents, Lottoland faces a ban in NSW.
The Daily Telegraph has today reported that the Gibralter-based betting agency is in the crosshairs of the state government, because of its effect on local lottery sales, and the revenue of newsagents.
Deputy Premier John Barilaro told the Telegraph, the government “will take steps to restrict the operation of synthetic lotteries… [it’s] committed to standing up for local businesses and consumers.”
Barilaro also questioned people’s understanding of gambling services like Lottoland. “Synthetic lotteries do not have the same level of consumer protection as domestic lotteries,” he said.
“Our concern is that many customers buy tickets in a synthetic lottery, believing they’re entering a lottery, when in fact they are instead betting on the outcome of that lottery. A domestic lottery has a guaranteed prize pool, and is bound by strict terms and conditions and robust regulations.
A synthetic lottery, on the other hand, is no more than online gambling.
This follows Western Australia’s decision to start the banning process in September, and South Australia, which already prohibits Lottoland. Premier Mark McGowan said the WA government would make Lottoland illegal after Lotterywest’s sales free-fell by $60 million in the previous financial year.
“South Australia has outlawed Lottoland — we’re going to do that as well,” he said. “All that Lottoland and those sorts of organisations do is suck money out of here, send it elsewhere and not give anything back. We have indicated publicly before that we’re going to do this, so I’m keen to make sure it happens.
All that Lottoland and those sorts of organisations do is suck money out of here, send it elsewhere and not give anything back.
“The drafting process will take some time, but we’re keen to protect Lotterywest.” At present, Lottoland is licensed in the Northern Territory, Victoria and Western Australia are looking to restrict its operation, and South Australia is Lottoland-free.
Adam Joy, CEO of Australian Lottery and Newsagents Association, praised the NSW government’s announcement.
“We applaud the Minister for Small Business John Barilaro, and Minister for Racing Paul Toole for their commitment to Australia’s largest retail and home delivery group and the 6,000 people in New South Wales that it employs. They have heard our concerns and seen the targeting of NSW business owners’ livelihoods, and we thank him for championing small business with this move,” he said today.
“Online bookmaking sites that offer bets on lottery outcomes threaten the significant state tax revenue generated by lotteries, hurts small business, and in many cases are misleading to consumers.
“This also sends a clear message to any business that is deliberately or unintentionally misleading NSW consumers, that it won’t be tolerated or overlooked. And we call on other state governments to do the same.”
This also sends a clear message to any business that is deliberately or unintentionally misleading NSW consumers, that it won’t be tolerated or overlooked. And we call on other state governments to do the same.
A spokesperson for the online lottery giant has called for a national point of consumption tax. “In otherwords, don’t ban us, tax us,” he said. “As of July 1 this year, Lottoland has been paying GST and also pays corporate tax.”
Synthetic lotteries are being outlawed all over the world. Andreas Kötter, CEO of WestLotto in Germany, told The CEO Magazine in September that they were not giving back to the communities they operated in like local lotteries, and customers were being deceived into thinking they were actually entering lotteries.
“The risk with these lotteries is that their jackpots aren’t backed by stakes. Customers are actually betting on lottery outcomes, and relying on insurance solutions to be paid out,” Kötter said. “Looking back to the financial crisis, this is quite similar… The customers are buying without being aware that there is no backing from stakes and they’re synthetic products. There’s no focus on responsible gaming for customer protection.”
If the NSW ban comes into effect, there will no doubt be ramifications for National Rugby League club the Manly-Warringah Sea Eagles, who entered into a seven figure commercial partnership earlier this year, even renaming their home ground — Lottoland.