Lottoland emerges victorious in jackpot wagers.
Starting from 2016 when Lottoland hit the market, the Australian government has been making moves to shut the online lottery provider down. Most recently, Lottoland secured an injunction in the Northern Territory, averting a potential ban on jackpot betting. Will this end the legal disputes that have plagued the company for several years?
Contested Marketing Language
Lottoland had previously succeeded in appealing against an ACMA ruling at the Supreme Court of New South Wales (NSW) in 2019, defending its bets on stock market indices. The company has also won a legal battle concerning jackpot betting, which the government had attempted to ban by amending the law since October. Changes to the law had been planned since the previous year.
According to ABC News, the Minister for Racing, Gaming and Licensing, Natasha Fyles, sent a letter to the Northern Territory Racing Commission (NTRC) in November 2019. The letter expressed concerns over Lottoland's use of language in its marketing. The secondary lottery company was accused of giving a misleading impression of being a traditional lottery provider through its marketing materials.
Fyles questioned the name Lottoland, as it contains the word 'lotto.' She urged the NTRC to update the company's license conditions. Additionally, the NTRC was instructed to prevent misleading lottery bets and bets on international financial market outcomes for its license-holders. The authority agreed to these demands in December.
However, Lottoland managed to secure an injunction at the Supreme Court of the Northern Territory (NT), preventing the government from making changes to the existing gambling legislation. The company argued that the proposed modifications would destroy its business model. Lottoland felt it was being persecuted by the Australian government.
The Australian Government's Anti-Lottoland Campaign
Lottoland operates partly in Australia and has a betting license. Its main focus is selling bets on the outcomes of actual lottery draws. Players can participate in international lotteries from any location, but Lottoland does not purchase any original tickets. Instead, it bears the risk of a win. The Australian government considers Lottoland a threat to the national lottery provider, Tabcorp.
The Australian government has been opposed to Lottoland since its 2016 entry to the market, so much so that it instated a ban on online lottery betting in the Australian Capital Territory (ACT) in 2018. The latest legal decision shows that Lottoland is indeed facing government pressure. Consequently, a preemptive injunction was filed shortly after the NTRC proposed changes to the Northern Territory Racing and Betting Act of 1983 that had not been announced before.
Lottoland's lawyer explained in court that while the proposed modifications applied to all NTRC-licensed betting providers, they would only adversely affect Lottoland's business model. Meanwhile, Minister Natasha Fyles justified her objections, citing numerous customer complaints against Lottoland. Customers believed they were taking part in actual lottery draws and were disappointed when they didn't win.
Lottoland Australia allows customers to place bets on Powerball and EuroJackpot results without buying a ticket. This "synthetic lottery model" is now illegal in Australia, which caused Lottoland to introduce the jackpot betting model in 2019. However, using jackpot names like US Power has led some players to assume they're participating in the American Powerball lottery draw.
An Anticipated Hearing in November
In December 2019, the NTRC presented two amendments to the bettors, banning bets giving the impression of lottery entries and prohibiting bets on developments and outcomes outside the sports sector, such as on financial markets. Lottoland's injunction prevents the NTRC from implementing these changes until the state Supreme Court makes a final decision. Lottoland Australia is unlikely to give up without a fight. Further counterclaims are expected.
A Tussle Between Lottoland and Tabcorp
With over 700,000 customers in Australia, Lottoland is primarily seen as a threat to national lottery provider Tabcorp. The two companies have often engaged in heated debates. Lottoland CEO Luke Brill labeled Tabcorp an outdated monopoly that doesn't belong in the contemporary gambling landscape. He described the company's alternative offers as a contribution to democracy.
David Attenborough, CEO of Tabcorp, strongly objected and stressed that the national lottery contributes more than 400 million dollars every year to finance hospitals. Moreover, newspaper merchants who sell lottery tickets pocket around 100 million dollars. The lottery's main purpose is not to generate vast sums of money, but also to benefit the public, whereas Lottoland contributes nothing to society.
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Source: www.onlinecasinosdeutschland.com
