Australian Parliament Passes Ban on Lottery Betting Websites

The new law, coming into force at the beginning of 2019, will prevent synthetic lottery sites, led by Lottoland, from offering their services in the country.

On Thursday, June 28, the Australian Parliament passed an important piece of legislation set to effectively ban all lottery betting websites. The new law, which will come into force on January 1, 2019, aims to protect lottery ticket sales in the country and put out of business synthetic lottery sites such as Lottoland.

Consumer Protection or Monopoly?

Synthetic lottery sites like Lottoland give users an opportunity to bet on outcomes of different large lotto and lottery draws around the world without having to purchase a physical ticket. The new law closes the loophole that enabled these sites to operate within the country and represents a huge political victory for Tabcorp, the company behind Tatts Group lotteries.

According to Tabcorp CEO David Attenborough, the lottery isn't and shouldn't be about making heaps of money for the operator but also giving back to the community. In his words, the Tatts Group operated Victorian lottery delivers $400 million for the hospitals and secures $100 million for newsagents, convenience stores, and other places where physical lottery tickets are sold. Comparatively, Lottoland paid no tax in the country and gives absolutely nothing back to the community.

Not Giving Up Without a Fight

With the passage of the new regulation the Australian government has called upon lottery betting sites to do the right thing before the deadline and cease their operations in the country. However, Lottoland officials have announced every intention to fight the new law and, if necessary, change their business model to remain in the market.

Since its arrival to Australia, Lottoland, being the biggest synthetic lottery site, has acquired around 700,000 customers and the company is keen to continue the growth. Lottoland's CEO Luke Brill has already announced the site will remain in operation for at least another six months and they are looking into ways to continue offering their services after the new law kicks in.

Brill described the latest decision as a "shameful, protectionist measure," warning that it will have adverse effects on newsagents that is supposed to protect as well, as they will be left at the mercy of huge corporations and their monopoly.