Things are getting heated in Australia between Lottoland and the federal government. The operator has taken to legal action to prove that it’s products have been ill-defined by the Australian Communications and Media Authority (ACMA), reports the Sydney Morning Herald.
The fight goes back to an investigation started by the ACMA into Lottoland’s offering. They determined that Lottoland’s jackpot betting product, which uses numbers from financial markets and then randomizes them to create a lottery, was actually a game of chance. The problem with that is that it’s illegal to provide that kind of service. “These included the Mon and Wed Jackpot, Tue Jackpot, Thu Jackpot, US Millions, and US Power jackpot betting services,” the ACMA declared.
As we noted when we reported on the initial ACMA investigation, Lottoland would be feeling a bit persecuted for how Australia has approached their products, because they only turned to this jackpot betting system after Australia outlawed the more traditional lottery betting they had been offering.
So Lottoland is now taking their plight to the New South Wales Supreme Court, because they disagree with ACMA’s definition of jackpot betting. Luke Brill, Lottoland Australia’s CEO said, “We have worked hard to adapt to recent changes to the law, and we are committed to providing exciting new products that our customers love.
“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.”
Despite being antagonized by local government agencies, Lottoland claims to have 750,000 users in Australia. They’ve built this user base with strong TV advertising, and have been a threat to the local lottery provider, Tabcorp, as well as other smaller players. That threat could be a motivating factor in the government trying to find legal problems with their offering.
ACMA is refusing to comment on the case, stating it would prefer to wait until legal proceedings are already dealt with.
Despite having a license to operate in Australia and maybe even having a chance with the judges, it still looks like a tough road for Lottoland to travel. As long as they have local competition, and politicians clearly not working in their favor, they will be the dark horse in this fight.
