Lottoland to sue media watchdog over ‘jackpot betting’ claims

A controversial betting company has made headlines yet again after launching legal action against the federal government.

Embattled online gambling company Lottoland has launched legal action against the Australian government over an alleged breach of gambling laws.

The stoush began after the country’s media watchdog, the Australian Communications and Media Authority (ACMA), found the company’s “jackpot betting” service had breached the Interactive Gambling Act.

According to the Lottoland website, jackpot betting involves “betting on the outcome of selected financial markets”, which means players are “required to match your selected numbers with data taken from indices at a specified time”.

ACMA claimed its investigation revealed “several Lottoland online jackpot betting services were games of chance which are prohibited”, according to The Sydney Morning Herald.

It argued “the Mon and Wed Jackpot, Tue Jackpot, Thu Jackpot, US Millions, and US Power jackpot betting services” were all in breach.

ACMA has not taken enforcement action against Lottoland, but the company has vowed to fight that ruling as it does not accept that its products contravene the law.

Legal documents seen by news.com.au revealed Lottoland had launched legal action in the New South Wales Supreme Court against the body.

“We have decided to challenge ACMA in the Supreme Court because we believe their view on Jackpot Betting is wrong,” Lottoland CEO Luke Brill said in a statement provided to news.com.au.

“Lottoland’s Jackpot Betting products have been approved by the relevant licensing authorities, and we believe they are fully compliant with Australian law.

“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.”

The Australian Communications and Media Authority says Lottoland’s ‘jackpot betting’ service has broken the rules. Picture: Lottoland.com.au

ACMA has declined to comment on the matter as the legal proceedings continue.

However, it is just the latest in a string of controversies to rock Lottoland.

Last year, the Australian government announced a betting crackdown and passed draft laws making “lotto betting” or “synthetic lotteries” prohibited in the country by early 2019.

The practice, which allowed punters to bet on the outcome of a lottery instead of buying a ticket for an official lottery draw, was banned amid fears it enticed people away from traditional lotteries and the revenue they generate for newsagents, pubs and clubs.

It was a service offered by Gibraltar-based Lottoland, and at the time, many believed the ban could kill off the company.

Last April, Lottoland also made headlines after a Perth couple claimed the company dudded them out of a $71 million MegaMillions win.

The couple alleged they had selected winning numbers, but that their bet had been placed in the following week’s draw.

They lodged a complaint to the Northern Territory gaming regulator, but at the time a Lottoland spokesperson said an internal investigation had revealed the couple placed the bet after the draw had closed and “therefore, was not eligible to bet on that outcome”.

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