- Australian Securities and Investments Commission (ASIC) opens investigation into ASIC
- Lottoland may be using “jackpot betting” to offer over-the-counter-products to Australians
- The Northern Territory Department of Justice is looking into the issue but has declined to comment
Lottoland has come into the visor of the Australian Securities and Investments Commission (ASIC) for reportedly offering banned product by circumnavigating legislation with the help of the company’s international lottery business.
Lottoland in Troubled Waters in Australia
Lottoland recently made a move on Zeal’s Germany-facing business, a bid that has been turned down since by Zeal. Lottoland has been trying to carve itself a piece of the German market for a while now, but its offer has been faced off by the reigning companies backed by German states, unyielding in their determination not to land the Gibraltar-licensed company a shot at the local market.
It turns out, that in Australia, Lottoland may have used its international lottery businesses to include and target Australian customers. Lottoland has recently introduced its latest addition to the lottery vertical, revealing the so-called jackpot betting, which now Australian authorities are looking into to determine whether it’s the conduit of unauthorized betting products.
Australia opted out of such contests by passing laws back in June, 2018, effectively banning international lotteries. With Lottoland targeting the Australian market, it’s now up to investigators to decide whether the operator has done any wrongdoing.
Authorities in Australia have been particularly strict with unlicensed operators. Many have threatened to lodge an official complaint with the licensing authority of any brand that has not obtained an Australian license but was still offering products to customers in the country, a decision that has triggered an exodus in 2018.
Mitch Fifield Looks into the Issue with ACMA’s Help
Now, Minister of Communications Mitch Fifield is looking into the case with the help of the Australian Communications and Media Authority’s (ACMA) . ACMA is the authority which last year reported positive results in blocking unlicensed bookmakers and casinos from accessing Aussie gamers.
Meanwhile, a spokesperson for Minister Fifield commented on the issue, cited by The Sydney Morning Herald:
As Lottoland is registered in and regulated by the Northern Territory government, the Communications Minister will also seek the views of Northern Territory Attorney General Natasha Fyles on this latest activity.
Other than comments from Minister Fifield there has been very little information. The Justice Department of the Northern Territory stated that the issue was investigated and that no further control could be made at the time.
The Sydney Morning Herald reached to ASIC where the complaint had been lodged the week before on Friday, but the authority turned down comment.
The type of jackpot betting that Lottoland uses data from financial markets, including the Australian Securities Exchange at fixed points each day. After the raw data is obtained, an algorithm is used to determine the winning numbers.
According to people close to the matter, Lottoland may use this form of jackpot betting to create a legal loophole and flock its own over-the-counter products, The Sydney Morning Herald has concluded.