Fri, Feb 8, 12:36pm by Staff Writer
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.
In more promising news for Lottoland, its full portfolio of games was added to FSB’s platform after an agreement between the two operators recently.
FSB provides platform gaming services to more than 20 operators and will integrate
Lottoland’s instant win and jackpot lottery betting game alongside its existing
sportsbook and casino offering, according to iGaming Business.
Lottoland’s current offering allows customers to partner operators to bet on the world’s leading lotteries including PowerBall, MegaMillions, EuroMillions and EuroJackpot.
Lottoland offers betting games on more than 30 lotteries around the world and has paid out more than 1 billion euros since it was founded in 2013.
In 2018, Lottoland paid out the largest ever online gambling dividend of 90 million euros to a German customer after they won a Eurojackpot game.
It underwrites any payouts through its proprietary risk management system.
FSB’s business development director Richard Thorp said the addition of lottery games offering big payouts would give its partners an advantage over rivals.
“As the market evolves, it’s becoming increasingly critical to harness the ability to offer huge jackpots which enhance the playability of our games suits, and this partnership with Lottoland secure that future,” he said.
“Our platform is raising the bar for engaging product portfolios, driving the sector forward via creative features for online, mobile and retail. Needless to say, Lottoland’s games are a natural fit,” Mr Thorp said.
There is also concerns about their future in Germany after a court ruled in 2018 that an unidentified lottery betting operator – not Lottoland – had no legal right to operate in the country in response to a case brought by a state lottery operator.
The UK Gambling Commission is banning people from using credit cards to place bets in an attempt to curb problem gambling. The…
A Japanese lawmaker who played an instrumental role in the legalisation and promotion of casino gambling has been indicted on bribery charges.…
India’s largest casino operator has been granted a gaming licence in Nepal. Inkedin reports that Delta Corp has finally secured the gaming…