The government of Western Australia is set to ban online lottery service Lottoland in order to protect Lotterywest under new legislation.
Australia.- Gibraltar-based Lottoland is facing a ban from the government of Western Australia, which wants to protect Lotterywest after figures revealed more locals are choosing online services. The thriving segment is hurting traditional lottery and reduces the chances of Western Australians buying lotto tickets generating a US$47.9 million slump in Lotterywest sales last financial year.
As the rise of online sports betting and “synthetic lottery” providers were blamed for the 7 percent (as well as WA’s economic downturn), Premier Mark McGowan said the State Government would draft legislation like South Australia’s, where Lottoland is banned from selling products. Money given by Lotterywest to the community dropped US$12.78 million and prizes paid to players fell US$127.8 million.
McGowan said online betting agencies like Lottoland were sucking money out of WA, which could be going to help charity organisations and community groups and added: “South Australia has outlawed Lottoland — we’re going to do that as well. All that Lottoland and those sorts of organisations do is suck money out of here, send it elsewhere and not give anything back. We have indicated publicly before that we’re going to do this, so I’m keen to make sure it happens.”
The Premier further explained that “the drafting process will take some time, but we’re keen to protect Lotterywest.” He also explained that the new legislation would cover all lottery related organisations.
“Lotterywest is the best organisation of its type in Australia, probably the world,” he added and said: “It returns a lot to the WA community and I want to make sure that keeps happening.”
Susan Hunt, Lotterywest chief executive, added: “When Lotterywest does well, the community does well.”