Western Australia to Crack Down on Lottoland’s Lottery Betting Business

The government of Western Australia is working on a draft bill that would seek to ban the provision of betting on lotteries services within the state’s borders. The move was confirmed by Premier Mark McGowan.

Western Australia’s top official has told local media that the preparation of the necessary legislation would take some time, but that lawmakers are determined to curb services that have hit significantly the profitability of the state’s traditional lotteries.

The bill will specifically target Gibraltar-based online lottery betting operator Lottoland. The company has been servicing Australian customers, including ones from Western Australia, through a license from the Northern Territory. The federal territory has become a favorite base to international bookmakers operating in Australia due to its favorable taxation and licensing regimes.

As pointed out by Premier McGowan, his administration will seek to ban Lottoland’s operations in order to prevent state-run lottery operator Lotterywest from suffering further losses. Recent financial reports have shown that the operator’s sales dropped 7% or A$60 million during the previous fiscal year.

Lottoland’s operations in the state as well as the increasing popularity of online sports betting were blamed for the considerable slump in traditional lottery sales. Generally speaking, the Gibraltar-based operator provides its customers with the opportunity to place online wagers on the outcomes of some of the biggest national and international lottery draws. Here it is important to note that Lottoland’s customers do not participate in the draws themselves, but betting on them, they can win equally attractive prizes.

Recent figures showed that residents of Western Australia are more likely to turn to online lottery services, including the ones provided by Lottoland, than to buy a lottery ticket from a brick-and-mortar facility.

Premier McGowan has pointed out that the new piece of legislation would aim to block not just Lottoland’s operations but also other lottery-related entities. The move will thus keep much-needed lottery revenue within the state’s borders. Financial reports showed that said contributions have dropped significantly due to the decreasing popularity of Lotterywest’s services.

Massive Nationwide Campaign against Lottoland

Lottoland has recently been banished from South Australia and, as Casino News Daily reported on Sunday, Victoria is also planning to introduce a legislation that would ban the operator’s services within the state’s borders. The bill is likely to be presented in October, state lawmakers have told local media.

Last week, the Australian Lottery and Newsagents Association officially launched the “Lottoland’s gotta go” campaign that calls for a nationwide ban on the provision of betting on lottery services. The campaign includes TV advertisements and promotional content in lottery stores across the nation.

Among other things, the campaign also criticizes Lottoland for misleading customers and providing them with limited information on the exact nature of its services.

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