The lottery in Australia has seen better days, with fraud cases happening in the last decade. One winner pled guilty to fraud, and a married couple were found to have turned in fake lottery tickets for winning tickets that no one claimed. It has made Australia change how they view the lottery.
Australia is so unhappy with the current lottery situation they have created a ban under new regulations. However, Lottoland says they are not going to leave.
Changes to the regulations will not affect Tabcorp, just online competitors such as Lottoland. The land-based company will be able to continue providing lottery tickets to Australian residents, but online betting sites that offer lottery are now completely banned.
Lottoland’s Response to Australia
Lottoland is an online lottery company. The business made an announcement to their Australia customers stating they will not leave them high and dry, without any online lottery option, despite the legislative changes Australia is enacting.
Thursday, June 28, 2018, Australia’s government approved the Interactive Gambling Act Amendment Bill. It prohibits online betting operators from “making, placing, accepting, or receiving” wagers on Australian and overseas lottery draws. It also includes Keno results.
The idea behind the betting system is that people can wager on the odds of Keno or lottery results. The bill was first mentioned in March, and there was a huge campaign by Tatts Group against companies like Lottoland. Tatts stated Lottoland is cannibalizing the sales and are not providing a percentage of their revenue back to Australian social causes.
Most gambling companies are required to pay high taxes, which help with social causes in the host country. Minister for Communications, Mitch Fifield stated the legislation is going to protect 4,000 small businesses, pharmacies, newsagents, pubs, and community clubs who have long offered betting products.
The bill will come into effect six months from now, but Lottoland Australia is still trying to block the changes from happening. Luke Brill, the CEO, said they are there to stay and their technology is advanced to serve 700,000 Australian clients, without violating the new rules.
Lottoland has also challenged the bill from the beginning. New South Wales is considering a probe into Tatts based on Lottoland’s information about the company with regards to providing misinformation to gain public support for their company. There will be an investigation, but that does not mean Lottoland will win against the new regulations that are signed and passed.