The lotto and keno betting industry will cease to exist under a new proposed amendment to the Interactive Gambling Bill – a move welcomed by the Australian Lottery and Newsagents Association (ALNA).
Lotto-betting sites are wagering websites that send bets overseas, with customers betting on the outcome of lotteries. They offer no tickets in a draw, instead drawing from regulated lottery businesses and offering bets on lottery outcomes, relying on complex insurance-linked securities to pay any winners.
ALNA has long held serious concerns about the ethical conduct, high consumer risks, damage to Australian businesses, and dodgy structures of these schemes.
“We are pleased to see this loophole being addressed on a national level,” ALNA CEO Adam Joy said. “The best kind of consumer protection from synthetic lotteries is to not allow it in our country. The model encourages problem gambling, promotes high-risk spending and is misleading regarding the winnings available. And it also comes at a significant cost to state taxes, and to local family-run small businesses – which employ locally, pay Australian taxes and support the local community.”
Betting on the outcome of lotteries is not an approved betting contingency in South Australia, so lotto-betting schemes cannot accept bets there. The UK government has recently moved to close further loopholes in its Gambling Act, to ensure betting on lottery outcomes is prohibited.
The proposed amendment will see decisive national action to prohibit these types of businesses in Australia.
“This will be welcome news for the consumers who have been misled by these online schemes, the community that have been concerned about the impact on state tax revenues, and the more than 4,000 small businesses and their 15,000-plus employees that are regulated lottery retailers,” Mr Joy said.
