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Good news for lottery retailers: Government Announces Crackdown on Online Gambling and Shadow Lotteries

The Federal Government on Tuesday announced a significant crackdown on online gambling products. These measures aim to limit gambling harm and close regulatory loopholes.

Prime Minister Anthony Albanese confirmed several new bans in Parliament. The changes will target online keno and “pocket pokies” specifically.

The government plans to ban online keno entirely. Current operators will be affected once legislative changes are implemented. This product is currently exempt from credit card bans and advertising rules.

Foreign-matched lotteries are also under scrutiny. These services allow Australians to enter international draws they would otherwise be unable to join. The government will consult with industry to enhance consumer protections in this area.

“Shadow lottery products” or rewards clubs will face new regulations. Some operators use loyalty programs to offer lottery-style draws for high-value prizes. The government intends to define these clearly as lottery products to ensure national regulation.

Enforcement against illegal offshore gambling will be boosted. The illegal offshore market is projected to reach $5 billion by 2029. These sites often lack consumer protections and pay no Australian taxes.

The government will work with the banking sector to block financial transactions. AUSTRAC will be used to track payments to offshore providers. This includes transactions involving credit cards, crypto, and account-to-account transfers.

ACMA’s website blocking powers will be streamlined and expanded. The ban on advertising illegal services will also extend to social media platforms.

For small business owners like newsagents with lotteries, these reforms represent a shift in the digital gambling landscape. The government will continue to consult with states and territories on the implementation timeline. Retailers should pressure their local members on this, so it happens sooner than later.

For newsagents, these changes highlight the distinction between regulated in-store lottery products and unregulated digital competitors. The ban on online keno and foreign-matched lotteries may encourage customers to return to traditional, compliant retail channels. Maintaining a safe and regulated environment remains a core strength of the local newsagency model.

None of these changes, however, will reduce the onward march of The Lottery Corporation in growing online sales. This is the biggest threat to over the counter in-store purchase of lottery products in my opinion.

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