Lottoland claims to have 750,000 users and offered Australians the chance to bet on the outcomes of major American lotteries such as Powerball. Then, Legislation that was passed in June 2018 that bans Lottoland and others from offering customers the ability to bet on the outcomes of international lotteries. Following the ban, the Gibraltar-based Lottoland launched ‘jackpot betting’. Lottoland’s ‘Jackpot betting’ determines winners by taking specific numbers from financial markets like the ASX and New York Stock Exchange at particular times of the day, arranging them into one long number, and using a computer calculator to convert it into the winning lottery numbers.
Lottoland’s newest offering, ‘jackpot betting’, has drawn the ire of rival companies, with the company entering talks with the online betting regulator about the product.
The Australian Communications and Media Authority (ACMA) and Lottoland have met after Tabcorp became the latest to lodge a complaint about Lottoland with the ACMA, according to The Sydney Morning Herald and The Age.
‘Jackpot betting’ determines winners by taking specific numbers from financial markets like the ASX and New York Stock Exchange at particular times of the day, arranging them into one long number, and using a computer calculator to convert it into the winning lottery numbers.
Lottoland claims to have 750,000 users and offered Australians the chance to bet on the outcomes of major American lotteries such as Powerball.
It faced a furious backlash from local wagering companies Tabcorp and its TattsLotto division that brought about federal legislation in June 2018.
The government has formed the view that permitting betting on these services, also known as ‘synthetic’ lotteries, undermines the longstanding community acceptance of official lottery and keno products,” Mr Fifield stated.
“Traditional lotteries and keno games are popular and longstanding recreational gambling products that form an important income stream for thousands of small businesses across Australia, including newsagents, pharmacies, pubs and community clubs,” Mr Fifield said.
“Online services offering products that involve betting on lottery outcomes are relatively new and have generated considerable community concern. Since these concerns were first raised last year, the government has listened carefully to a range of groups that have views on the undesirability of permitting betting on these products,” Mr Fifield said.
Legislation that was passed in June 2018 came into effect in January 2019 and bans Lottoland and other similar agencies from offering customers the ability to bet on international lotteries.
Following the ban, the Gibraltar-based Lottoland launched ‘jackpot betting’.
The Herald and Age revealed last month that this new offering was under scrutiny from Communications Minister Mitch Fifield, after the Morrison government requested the Northern Territory government look into the new product.
Lottoland is regulated under Northern Territory law.
Lottoland in talks with regulator over controversial 'jackpot betting' https://t.co/5JuaKDSzjZ
— Roman (@rsikosek) February 7, 2019
Sources with knowledge of complaints made to the ACMA revealed that concerns about ‘jackpot betting’ surrounded Lottoland using financial data to create a lottery draw, with Lottoland making a market for its own over-the-counter products.
In a statement, Lottoland responded saying it was not aware of “any complaint lodged by Tabcorp, and we have not been approached at any time by either ASIC or the ACCC.”
A spokesman went on to say that: “jackpot betting is fully complaint with Australian law, which is why it has been approved by the relevant licensing authorities, and we will be clarifying this with ACMA in due course,” he said.
https://www.australiangambling.lv/gambling-news/tabcorp-reportedly-files-complaint-against-lottoland/100211/