After a devastating slump in sales made by Lotterywest, the Western Australian (WA) Government is debating as to whether or not they will ban Lottoland altogether. Lotterywest is a state-owned company. T The company recently reported that profits were down by 7.7% in 2017 compared to 2016. This amounts to an AU$62 million drop in sales for WA.
Although the WA Lottoland has seen better days, the Gibraltar-based Lottoland is faring slightly differently. This foreign company allows its players to bet on the outcome of lotto draws worldwide. This aside, the company is managing to bring in over AU$1 million on a weekly basis after their launch in January 2016.
Heather Zampatti, the chairwoman of the Australian-based Lotterywest, believes that the reduction in sales is a result of the increase in sports betting online as well as illegal lottery providers.
Mark McGowan, WA Premier, responded by saying this AU$16 million decrease has reduced Lotteywest’s annual “community contribution” to local causes. In addition, he stated that the WA government would be looking at the legislation whereby they will specifically be targeting Lottoland.
McGowan expresses that Lotterywest is great for the community as it makes a great return. He further mentions that this is something they would want to continue. However, he makes mention of the fact that Lottoland gives nothing back and that is inacceptable. ‘All that Lottoland does… is suck money out of here, send it elsewhere and not give anything back.’
Launch of Lottoland
It was during the course of last year that Lottoland was granted a license by the Northern Territory. Allowing it to be the first of its kind to hold a lottery draw betting in Australia. The company soon started making great success within the country. However, the South Australian government moved quickly to ban its services and those similar to it from the state.
McGowan made a public statement after the South Australian prohibition plan had been put into motion. He stated that, ‘South Australia has outlawed Lottoland, we’re going to do that as well’. Further he mentions that even though the process of drafting will take time when it comes to Lotterywest, they would like to protect it.
What Lottoland has to Say
Chief Executive Officer of Lottoland, Luke Brill, defends his company by saying that the he contests the claims that government made about insufficient tax payments. He goes on to point out that they are licensed in the Northern Territory to which they pay gaming tax, GST and corporation tax. Further he states that they make contributions to other bookmakers. He expresses that other than that there has been no further infrastructure for additional tax to be paid.
Brill went on to say that Lottoland supports the government’s proposal to introduce a point-of-consumption tax for any online bets placed within the state. He said by doing this, 15% of their profits will be going toward the WA community, which he says is what they would ultimately want. He adds, to reiterate, that any campaign that says they avoid tax is false.