ALNA released this statement yesterday on lottery betting:
Ban on betting on Australian lotteries a step in the right direction
New ban demonstrates the problem with synthetic lotteries and the need to protect consumers and small business.
FOR IMMEDIATE RELEASE
Australia, 15 November 2017: A ban on betting on the outcome of Australian-based lotteries is a positive move in addressing the problem of synthetic lotteries and its threat to consumer protections and ethical conduct, according to the Australian Lottery and Newsagents Association. The Association is continuing its call for the Federal Government, in coordination with State Governments, to legislate against any operation of synthetic lotteries in Australia.
The move by the NT Attorney-General Natasha Fyles to ban bookmakers licensed in the Northern Territory from accepting bets on the outcomes of Australian-based lotteries, demonstrates that there is a serious problem with synthetic lotteries.
There is still a need for Federal Government intervention, in coordination with the states, to protect consumers and the Australian businesses that contribute to our economy.
Adam Joy, CEO of the Australian Lottery and Newsagents Association (ALNA) said, “We are pleased that the Federal Government and State Governments, in particular, WA, NSW and Tasmania, have worked together to address this issue and to deliver this important first step towards an overall ban.
Consumers will still be bombarded with potentially misleading advertisements for these risky betting products that are lacking certainty around payout figures. And they will still be lured into profiting a highly unethical business, including at the expense of news and lottery agents.”
The Federal Interactive Gambling Act makes it illegal to have online scratchies and online pokies, and it should also ban online betting on lottery outcomes.
“The facts are that Lottoland is under pressure because it has chosen to operate as an online bookmaker that poses as a lottery, outside of the much tighter regulations, consumer protections, and higher taxes that official regulated lotteries adhere to.
“It has attracted criticism because it allows consumers to be misled in a number of ways, and the bookmaker uses concerning tactics to attempt to hijack customers from news and lottery agents.
Synthetic lotteries are a matter of national concern, and this decisive action is a positive step towards the urgent action needed to address lotto betting in Australia,” continued Mr Joy.
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What is the difference between Lottoland and official regulated lotteries:
Lottoland is a wagering website that sends bets overseas, with customers betting on the outcome of lotteries. More colloquially known as lotto bets (synthetic/fake lotteries), these online-only bookmakers are different to official regulated lottery draws.
They do not offer tickets in a draw, rather they draw from regulated lottery businesses and offer bets on lottery outcomes, relying on complex insurance linked securities to pay any winners (there has only been one million-dollar prize recipient, compared to official lottery’s 253 millionaires in 2016).