Online lottery wagering prohibited in Australia
In a recent move to regulate the national gambling industry, the Australian parliament has approved an amendment to the law banning online betting on national lotteries. This change will result in companies like Lottoland, Multilotto, and others being ordered to shut down their operations within six months.
The Australian Senate, located in Canberra, has approved the amendment to the Australian Gambling Act at the beginning of 2019. This decision will make it illegal for operators of online betting platforms to offer their services within Australia.
These secondary lotteries, like Lottoland, are online bookmakers, often based and licensed in European tax havens such as Malta or Gibraltar, that allow players to bet on the outcome of state lottery draws. If a player picks the correct numbers, the winnings are paid out through an insurance policy from the bookmaker.
Online betting sites have always been competing with state-licensed national lotteries and are sometimes referred to as "black lotteries." Now, the Australian government is following the same attitude with their new legislation.
This ban comes as a disappointing blow to the Australian online sector, as the local online betting industry has already been subject to a 15% location-based tax since January 2019.
Consumer Protection
One of the leading advocates for the ban is Adam Joy, CEO of The Australian Lottery. He believes that the ban will protect consumers and close a loophole often exploited by lottery betting exchanges. In an interview with the Sydney Morning Herald, he said:
"The ban will protect Australia from synthetic lotteries and provide important new consumer protections by closing a loophole, as requested by lottery betting exchanges."
Communications Minister Mitch Fifield agrees with this viewpoint, stating:
"This legislation will also protect more than 4000 small businesses, including newsagents, pharmacies, and community clubs and pubs across the country who operate long-standing services specializing in recreational betting."
Targeting Lottoland Australia
Lottoland Australia, a subsidiary of the Gibraltar-based online bookmaker, is the primary target of this ban. Their website receives over 700,000 visitors from Australia, according to reports. However, the company is not backing down and intends to remain active despite the ban. In a statement, Luke Brill, CEO of Lottoland Australia, said:
"It's a shame that the Senate hasn't considered the unintended consequences of the new laws - not only for our customers, but also for competition and innovation. But this decision does not mean the end of Lottoland in Australia."
Brill highlights the harm to customers caused by the ban, stating that they will be at the mercy of a "huge money-grabbing monopoly in the form of the Tabcorp Group." Lottoland has tried to lobby the government to change their position.
Tabcorp Responds
Tabcorp, an Australian gambling giant that provides the state-licensed, so-called Victorian lottery operation, has responded to Lottoland's defiance. CEO David Attenborough had some sharp words about the situation, saying:
"The National Lottery delivers over AUD$400 million to fund hospitals and over AUD$100 million to the newsagents who sell lottery tickets, and that's what the lottery is about. The lottery isn't there to make tons of money for the operator, it's also there to drive the community forward. But Lottoland pays zero tax and gives absolutely nothing back to the community."
It remains to be seen if Lottoland will be able to overcome this opposition.
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Source: www.onlinecasinosdeutschland.com
