Lottoland Offers 20 Percent Cut to Newsagents Down Under
The battle for public and legal opinion down under over private lotteries like Lottoland has been one of the most heated in recent years. The open animosity between the Gibraltar based Lottoland and regulated lottery groups like Tatts Group has reached the highest political levels and it seems that Lottoland may well ne banned from operating in Australia with their current business model.
Lottoland have over 650,000 customers down under and are seen as a direct threat to national lotteries. One of the main objections raised is that they do not have to give a single penny to good causes like regulated lotteries and are also taking away revenues from newsagents who sell lottery tickets.
Last month saw legislation introduced by the Turnbull government introduce legislation that would ban betting on lotteries and keno games. The legislation is expected by many to pass as early as May. In an attempt to save their business Lottoland have now offered news and lottery agents a 20 percent cut of their profits from every bet place in overseas lotteries which are referred to Lottoland. This latest proposal is seen by many as too little and too late.
Chief Executive o of the Australian Lottery and Newsagents Association Adam Joy dubbed the latest offer by Lottoland as a “ desperate PR Maneuver” which is a last ditch attempt at survival and comes as the federal government move to protect punters from a high-risk business.”
Lottoland CEO Luke Brill said that the offer was not final and was aimed at starting a conversation that would be acceptable to all parties concerned.