Controversial wagering outfit Lottoland wins Keno licence with Victorian government

Victoria has granted a Keno licence to controversial wagering company Lottoland in a move that is set to spark a major backlash.

Victoria has granted a Keno licence to controversial wagering company Lottoland in a move that is set to spark a major backlash across the industry.

It comes just four years after the company was harshly criticised by state governments for a significant fall in revenue and the federal government banned its key product, dubbed “fake lotto”.

The Andrews Government on Wednesday announced it had issued two Keno licences, continuing an existing agreement with Tabcorp and an additional one to Gibraltar-based Lottoland.

They will also both be able to provide Keno online for the first time.

The state says the two-licence model will provide better competition but the move is expected to trigger a strong reaction from betting companies who have opposed Lottoland in the past

Registered in the Northern Territory, it attracted a fierce negative political campaign from newsagents and wagering outfits after it started offering bets on the outcomes of major lotteries and was labelled “fake lotto”.

The Andrews Government on Wednesday announced it had issued two Keno licences.

State governments, including Victoria, had also hit out at the scheme because it led to a significant fall in tax revenue from their state-sanctioned lotteries.

The Turnbull Government in 2018 passed laws that ended this practice by banning Lottoland and other companies from betting on international lotteries.

Since then, Lottoland has offered a new form of betting based on numbers determined by financial markets.

The approval of its licence in Victoria is likely to inflame tensions with other wagering outfits.

Both licences were awarded through a tender process and came after a review into Keno’s future in Victoria and will begin on April 15.

“The Victoria State Government should be commended for granting a second Keno license in the State, as it brings much needed competition that will benefit all Victorians for years to come,” A Lottoland spokesman said.

“Victoria is one of the most rigorous and respected regulators in the world. In order to secure this license, Lottoland was required to go through a highly competitive tender process followed by stringent due diligence tests by government regulators.

“The fact that the removal of a one licensee monopoly on the Keno market could trigger any reaction at all from the industry shows why this is such an important move by the Victorian State Government.”

In an announcement to the stockmarket, Tabcorp confirmed it had paid $25 million for the licence but the cost of the second licence is not yet known.

Gaming Minister Melissa Horne can now issue “harm minimisations” directions to operators to reduce incidents of problem gambling.

“The industry has changed significantly since 2012, with new technologies and new online market entrants, so we have updated the Keno licence to allow for a more modern approach,” Ms Horne said.

“These changes will benefit businesses, while also ensuring stronger harm minimisation and consumer protection measures are in place so those who play Keno in Victoria can gamble responsibly.”