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Lottery results carry far less meaning for punters using ‘fake’ Lottoland betting game
TRENTON AKERS, The Courier-Mail
August 7, 2017 9:13am
Subscriber only
WHEN is winning the lotto not winning the lotto?
Authorities are under pressure to ban a “fake” lotto operator which allegedly places in jeopardy more than $250 million a year in State Government taxes and thousands of newsagency jobs.
Lottoland has made a grand entrance into the Australian market, trumpeting potential returns worth hundreds of millions of dollars by “betting” on lotto outcomes, however the company is yet to pay any tax in Queensland as it is a licensed bookmaker in the Northern Territory.
However punters’ returns will rarely reach those lofty heights, with Lottoland slugging winners of US and European lotteries a 35 per cent reduction due to taxes, despite never entering the actual lottery.
Another 40 per cent is taken off for anyone who wants the payment paid in full upfront.
Lottoland slugging winners of US and European lotteries a 35 per cent reduction due to taxes, despite never entering the actual lottery. Another 40 per cent is taken off for anyone who wants the payment paid in full upfront.
The Australian Lottery and Newsagents Association’s (ALNA) Ben Kearney said the issue appears to be consumers are being told by Lottoland, “Don’t settle for less” in their ads.
“But in reality, (consumers) may only win far less. Lottoland split prizes over the number of winners in the actual lottery draw, even though consumers have only bet on it, not entered it, as well as over the number of Lottoland winners, which can significantly reduce final prizes,” Mr Kearney said.
Lotto agencies across Queensland have reported an “8 to 9 per cent” fall in their lotto revenue for the last financial year despite Lottoland’s claims its disruptive model would “grow the market.”
Lottoland relies on a Gibraltar-based insurance policy in the event someone successfully “wins” a jackpot after placing a bet on the lotto.
As a licensed bookmaker in the Northern Territory, Lottoland pays just over $500,000 a year to the NT State Government for an online wagering license and is then free to take bets across the country via its website.
After being banned in the UK and South Australia, The ALNA said the “parasitic” model employed by Lottoland needed to be banned by Queensland.
“Fake lotto like Lottoland is actually an online book maker in Gibraltar that hijacks the name and image of lotteries, confusing Australians about what it really is. It also only contributes roughly 1% of its turnover in gambling taxes each year,” CEO Adam Joy said.
“Lottoland are destroying Australian businesses while not contributing their fair share of tax.
“There is a reason that South Australia and other countries have banned and are in the process of banning Lottoland.”
After 18 months, Lottoland has already attracted around an eight per cent share in the online lottery market.
A spokeswoman for Attorney-General Yvette D’Ath said they were “aware of the business” of Lottoland however refused to be drawn on whether they would consider banning the practise.
“Consumers should be very aware that they are betting on the outcome of a lottery, not buying a lottery ticket,” she said.
“Consumers should also be aware that revenue raised by Lottoland does not contribute to public services in Queensland, unlike the Golden Casket revenues which are reinvested in Queensland and support local businesses such as your local newsagent.”
Lottoland did not respond to request for comment.
Lottery results carry far less meaning for punters using ‘fake’ Lottoland betting game
TRENTON AKERS, The Courier-Mail
August 7, 2017 9:13am
Subscriber only
WHEN is winning the lotto not winning the lotto?
Authorities are under pressure to ban a “fake” lotto operator which allegedly places in jeopardy more than $250 million a year in State Government taxes and thousands of newsagency jobs.
Lottoland has made a grand entrance into the Australian market, trumpeting potential returns worth hundreds of millions of dollars by “betting” on lotto outcomes, however the company is yet to pay any tax in Queensland as it is a licensed bookmaker in the Northern Territory.
However punters’ returns will rarely reach those lofty heights, with Lottoland slugging winners of US and European lotteries a 35 per cent reduction due to taxes, despite never entering the actual lottery.
Another 40 per cent is taken off for anyone who wants the payment paid in full upfront.
Lottoland slugging winners of US and European lotteries a 35 per cent reduction due to taxes, despite never entering the actual lottery. Another 40 per cent is taken off for anyone who wants the payment paid in full upfront.
The Australian Lottery and Newsagents Association’s (ALNA) Ben Kearney said the issue appears to be consumers are being told by Lottoland, “Don’t settle for less” in their ads.
“But in reality, (consumers) may only win far less. Lottoland split prizes over the number of winners in the actual lottery draw, even though consumers have only bet on it, not entered it, as well as over the number of Lottoland winners, which can significantly reduce final prizes,” Mr Kearney said.
Lotto agencies across Queensland have reported an “8 to 9 per cent” fall in their lotto revenue for the last financial year despite Lottoland’s claims its disruptive model would “grow the market.”
Lottoland relies on a Gibraltar-based insurance policy in the event someone successfully “wins” a jackpot after placing a bet on the lotto.
As a licensed bookmaker in the Northern Territory, Lottoland pays just over $500,000 a year to the NT State Government for an online wagering license and is then free to take bets across the country via its website.
After being banned in the UK and South Australia, The ALNA said the “parasitic” model employed by Lottoland needed to be banned by Queensland.
“Fake lotto like Lottoland is actually an online book maker in Gibraltar that hijacks the name and image of lotteries, confusing Australians about what it really is. It also only contributes roughly 1% of its turnover in gambling taxes each year,” CEO Adam Joy said.
“Lottoland are destroying Australian businesses while not contributing their fair share of tax.
“There is a reason that South Australia and other countries have banned and are in the process of banning Lottoland.”
After 18 months, Lottoland has already attracted around an eight per cent share in the online lottery market.
A spokeswoman for Attorney-General Yvette D’Ath said they were “aware of the business” of Lottoland however refused to be drawn on whether they would consider banning the practise.
“Consumers should be very aware that they are betting on the outcome of a lottery, not buying a lottery ticket,” she said.
“Consumers should also be aware that revenue raised by Lottoland does not contribute to public services in Queensland, unlike the Golden Casket revenues which are reinvested in Queensland and support local businesses such as your local newsagent.”
Lottoland did not respond to request for comment.
