Online betting operator Lottoland is to inflame a wave of fury in Australia after the company announced that it is to launch an advertising blitz just ahead of the Melbourne Cup Day. The Gibraltar-based betting company is to undertake this move in order to respond to the flood of attacks that it is cannibalizing the profitability of the state’s traditional lotteries. Even though many Australian states are determined to announce restrictions on the provision of “synthetic lotteries”, the company is to stir the pot once again.
Victoria, Western Australia, and Queensland officially announced that they will take steps to ban the provision of the so-called “synthetic lotteries”, which allow the players to place bets on the outcome of international lotteries, which does not require the purchase of a ticket in the draw. The online-only bookmaker was condemned to have a negative economic impact on the country, siphoning off money from Australia. This announcement resulted in a wave of massive discontent and many officials from different states embarked on a Lottoland witch-hunt.
Lottoland announced that it is to pitch an advertising campaign in order to stabilize its market positions after the firestorm. The company is to hit the bull’s eye as the ad blitz is to be launched some time this week. It is to coincide with the Melbourne Cup Day, which is the most popular Australian horse racing event traditionally held on the first Tuesday of November every year. Lottoland’s commercials will be aired on radio and television. The commercials will be also released online. Lottoland’s campaign is titled “The Jackpot That Stops The Nation” and it offers players the chance to win a life-changing prize of $100 million. Lottoland’s Australian Chief Executive Luke Brill announced that the results will be based on Oz Lotto draw.
According to a Lottoland statement, the winner of the horse race is to be awarded a first prize of $6 million, while gamblers will have much better opportunity to play for Lottoland’s lucrative “jackpot”. It is important to note that the Australian Lottery and Newsagents Association highly opposed the use of the term “jackpot”, as Lottoland is not a lottery.
Lottoland’s Attempts to Alleviate the Situation
Lottoland has appeared on the Australian gambling scene 18 months ago and it holds a license from the Northern Territory. For that short period, the online betting company managed to antagonize many people against itself. Consequently, many Australian states signaled that they will launch a clampdown on the provision of “synthetic lotteries” as these undermine the presence of the official national lotteries on the gambling scene. It is not a secret that officials were vexed by the fact that Lottoland pays taxes only to the jurisdiction, which issued its license, but it targets players from all other states.
In an attempt to quench the fire, Lottoland stated that the company agrees to pay taxes to the states in which operates, providing that its operations are regulated in the other states. Last month, Lottoland even suggested entering into an agreement with the newsagencies, which gave a battle cry that the online betting operator is hurting their operations. Under the agreement, Lottoland promised to ask registered members to name their newsagency, which is to earn 10% share of every bet the customer makes with Lottoland.