Online lotto provider Lottoland has announced that it has taken legal action against the federal government. The company was found to be in violation of gambling laws after an investigation revealed that Lottoland jackpot betting was actually a prohibited game.
Lottoland Jackpot Betting Found to Be Games of Chance
According to a report in the Sydney Morning Herald, the Australian Communications and Media Authority (ACMA) conducted an investigation on Lottoland jackpot betting games. These games pull numbers from various financial markets over the world and players bet on these numbers. Numbers are taken from markets like the New York Stock exchange and then arranged into a long string. At which point a computer converts the string into winning numbers that players then take out chances on. Comenting on the games, the ACMA stated:
“The Australian Communications and Media Authority (ACMA) investigation found that several Lottoland online jackpot betting services were games of chance which are prohibited. These included the Mon and Wed Jackpot, Tue Jackpot, Thu Jackpot, US Millions, and US Power jackpot betting services.”
Not the First Time Lottoland’s Products Found to Be In Violation
This is the just latest decision to go against Lottoland and products offered to Aussies. The company had also offered lottery betting in the past. Lottery betting allowed players to take chances on the outcomes of lottery games from around the world without participating in the draws.
Last year, a passage of laws was subsequently passed outlawing lottery style betting products. This development seen as a move to protect Tabcorp. Lottoland had stirred the pot a bit in 2018 with provocative TV ads, with the company amassing over 700,000 active customers.
Lottoland Takes Legal Action
The latest action against Lottoland has led the operator to take legal action in the New South Wales Supreme Court. The company believes that the ACMA’s “view on jackpot betting is wrong.”
Lottoland further explained that they believed that their products adhered to Australian law, so much so that their products were approved by Australian licensing agencies. As Lottoland Australia chief executive Luke Brill explains:
“By taking this stand against ACMA, we are fighting for the rights of hundreds of thousands of Australians who enjoy the occasional flutter. We are fighting for freedom of choice.”
Meanwhile, the ACMA has admitted that Lottoland had taken legal action against them. Beyond that they said the “ACMA will not be making further comment while legal proceedings are on foot.”
So Why All the Fuss Over These Games?
Why are these lottery style games of interest to the the government? And why did the parliament pass laws last year to try and stop what they called “synthetic lottery websites”. Some believe that it is to protect Tabcorp.
Tabcorp had claimed that Lottoland and other sites like it were a significant threat to their business model. The company claims that theses operators were taking away tax revenue from the government. Revenue that could otherwise go to fund schools and infrastructure.
Independent Senator David Leyonhjelm had condemned the law as a protectionist measure. He said that they will “lock out a new and innovative business”. He also said that we should be encouraging businesses instead of shutting them.
Many feel that actions against Lottoland and other companies do nothing but cement the monopoly that Tabcorp has on the lottery industry in Australia.