Australian Lottery Retailers Condemn Lottoland’s Lottery Betting Practices

Three Australian states may soon ban the operations of Gibraltar-based lottery betting company Lottoland, Victorian news outlet Herald Sun has reported. The reports emerged after the Australian Lottery and Newsagents Association voiced concerns that Lottoland’s services harm the well-being of more than 4,000 locally owned lottery businesses.

The Association has recently announced the launch of a nationwide campaign that lobbies for the Gibraltar-based company’s operations to be prohibited. The campaign distributes lobbying content in different forms, including TV ads and is supported by a number of news and lottery retailers from around the nation.

The governments of Victoria, Western Australia, and Queensland are reportedly considering ways and means to crack down on Lottoland’s operations. Comments have emerged that the company’s practices might be ones that are purposefully misleading customers.

Founded in 2012 and headquartered in Gibraltar, Lottoland offers its online customers the chance to bet on the outcome of some of the largest lotteries in the world. Australian opponents of the company’s practices have argued that its business model is quite confusing and that customers are poorly informed about the fact that they do not participate in traditional lottery draws.

Owners of smaller local lottery businesses have complained that the misinformation and Lottoland’s aggressive promotional activities have been hurting their operations for quite a while.

Although the topic has been discussed by the governments of the three above-mentioned states, the Herald Sun pointed out in an article from earlier today that it appears a case for Lottoland’s operations to be banned within Victoria is yet to be made by lawmakers.

Lottoland Supports Point of Consumption Tax

Luke Brill, Chief Executive of Lottoland’s Australian business, has recently told media that his company supported the implementation of a 15% Point of Consumption tax. The introduction of the tax has been discussed at both federal and state level over the past several months.

It was announced last week that a Point of Consumption tax will actually be implemented in the state of Western Australia. Online betting operators will thus have to pay 15% on revenue from their local bettors to the government. The new tax practically makes Western Australia one of the world’s regulated jurisdictions where it is most expensive to do business in.

Lottoland currently holds licenses from the UK Gambling Commission, the Government of Gibraltar, the Republic of Ireland National Excise License Office, and the Government of Australia’s Northern Territory. In other words, it does not pay any taxes in Western Australia, Victoria, and Queensland. Targeting and, as local lottery retailers believe, stealing customers from the three states, and impacting those retailers’ revenues, the lottery betting operator has thus hurt tax revenue contributed to the state from those that are subjected to local taxes, opponents of its practices claim.

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