Lottoland have offered the Australian Lottery and Newsagent Association (ALNA) a 10% cut of their online takings from bets, following recent outcries in the country to have the online betting companies banned from operating.
The online lottery betting company, Lottoland, offers customers the ability to wager on the outcomes of lotteries whilst offering lower odds than their traditional counterparts. Having come under fire recently, Lottoland have made what people are calling a ‘peace offering’ by proposing a 10% cut of all of their online bet takings to the ANLA.
Contrary to popular belief companies such as Lottoland maintain that they do not impact traditional lottery sales or newsagents revenue.
Nigell Birrell, CEO of Lottoland, revealed the companies findings on the matter in an article entitled 'The Truth' in which he states: “In Australia, Lottoland accounts for less than 1% of Tatts overall revenue. In the United Kingdom, both the Government (DCMS) and the Gambling Commission have both publically stated that there is no evidence to suggest that Lottoland is having an impact on the National Lottery or Good Causes – our sales account for less than 0.1% of Camelot’s revenues”.
Regardless, the ANLA have formed a campaign against what they call “online wagering business”, in an attempt to remove what they see as competition for the traditional lottery sales. The ANLA fear that they will lose customers as a result of people being able to go online to use alternative lottery betting websites.
“It would appear that Lottoland’s recent offerings are really desperate token gestures and a PR stunt, rather than a solution to a problem that not only affects news and lottery agents but also affects consumers who are misled,” said Association Head Adam Joy.
The ANLA are supported by the Tatts Group, the operators of the Australian lottery who have donated AUS$5m towards the campaign.
The fact is Lotoland are well aware that online poker recently received the boot from the Australian market and the current political climate is quickly turning against various forms of gambling.
The 10% offering has clearly not convinced the ANLA and could potentially affirm the admittance of wrong doing in the eyes of politicians.
Lottoland will face some testing times in Australia. When the offer of 10% is not enough to silence your opposition alarm bells must start ringing. It would appear that the Tatts Group, who like many national lottery operators are unused to competition, are attempting to levy their years of tax revenue contribution to eliminate what they perceive as a potential threat to their monopoly.
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