Online betting company Lottoland Australia has revealed its idea to dispose of its products by selling them to customers of local newsagents, using the latter as advertising tools. The industry body that represents local newsagencies and lottery agents – the Australian Lottery and Newsagents’ Association (ALNA) – has shared its belief that the proposed offer of the operator is contradictory and comes as part of the company’s attempts to attract newsagents’ customers.
The Chief Executive Officer of the Australian Lottery and Newsagents’ Association, Adam Joy, shared the Association’s view that the idea of Lottoland comes as an offer to generate commercial gains from local newsagents. He also explained that the idea’s detail and assurances were still blurred, but insisted that the main purpose of Lottoland remains taking customers away from news and lottery agents by at the same time using them and their store as a platform to advertise its services as an online bookmaker.
ALNA Concerns
Furthermore, according to Mr. Joy, Lottoland has spend a year and a half criticising Australian newsagents, while as he shared, trust is an integral part of every partnership and most of all, it normally does not involve one of the parties trying to take advantage of the other party’s value. According to the Chief Executive Officer of the ALNA, the idea of Lottoland to sell its products to newsagents’ customers is aimed exactly at targeting newsagents’ users, no matter how eagerly the company denies that.
Lately, the operator has been put under pressure, as it has made a choice to operate as a web-based company without taking into account tighter regulations, higher taxes and customer protection rules that lottery companies normally stick to. In addition, Lottoland has been widely criticised because of the fact that its customers could be misled that its betting services are identical to the ones offered by standard lotteries. In fact, Lottoland provides its customers to bet on the outcomes of a large number of lottery draws.
The company has faced legal action for misusing the trademarks of standard lotteries, which has been recognised as tactics to steal customers from Australian news and lottery agents.
If the idea of Lottoland also raises another concern that the offer would end up in risking news’ and lottery agents’ credibility, while customers may find out that the winnings they are paid out do not correspond to the advertised amount.
Lottoland Faces Nationwide Criticism
Lottoland, on the other hand, has answered to the accusations, with its Chief Executive Officer Luke Brill saying that the company does no longer appear as a lottery and using contradictory practices to expand its market presence.
Lately, Lottoland has been facing a nationwide campaign in Australia, as it has been criticised for the way operates, being blamed for trying to take away customers from local newsagencies and attract them to its own services.
The operators’ services have already been suspended in South Australia, while the state of Victoria has also revealed plans to introduce a suitable piece of legislation to suspend Lottoland’s operations. Reportedly, such a piece of legislation could be introduced until the of October. The Government of New South Wales has become the most recent authority in the country that is also considering a draft that could lead to suspension of the operator’s services.
To date, Lottoland pays taxes only to the state government of the Northern Territory where it owns an operating license.
- Author
Olivia Cole
