The Australian Lottery & Newsagents Association (ALNA) welcomes the Government’s announcement today to protect small business and consumers from shadow-market lottery products.
Today’s release of draft legislation will close critical loopholes in the Interactive Gambling Act 2001 (IGA) that have allowed these products to operate largely outside the regulatory frameworks that govern the broader lotteries industry.
The measures – including prohibiting foreign matched lotteries - will protect the livelihoods of over 4000 small businesses across Australia, which rely on revenue from state-licenced lotteries.
ALNA has been concerned that the unchecked growth of shadow-market lotteries and operators would potentially:
- Threaten the sustainability of the thousands of small businesses operating in the sector
- Risk closures and jeopardise the livelihoods of an estimated 20,000 employees
- Undermine the billions of dollars in state and territory lottery revenues that fund community services, grants to local organisations, charities and health services across Australia
ALNA members operate deep in regional and rural Australia, serving as community hubs and essential services providers, often in areas where few other commercial services exist. These are not just businesses; they are community anchors.
ALNA members regularly report that their customers have been confused by foreign matched lottery products.
Consumers who buy these products online are not getting a ticket in an actual overseas lottery draw. Instead, they are attracted by advertisements across Australia about huge overseas jackpots while relying on an online operator’s promise to pay, rather than a direct ticket in the lottery draw itself.
These products are regulated only in the Northern Territory but are not subject to the same integrity protections of tickets, regulated prize pools and consumer safeguards required under Australian state lottery licences, where the products are actually sold.
Ben Kearney, CEO, Australian Lottery & Newsagents Association, said: “The Federal Government’s proposed prohibition on foreign matched lotteries and online keno, and other strong regulations to clarify the definition of online trade promotion gambling services, are a vital step to protect thousands of Australian mum-and-dad small businesses, their employees, consumers, and the charities that depend on a well-regulated lotteries sector.”
“We welcome the Government’s action and urge all parties and the Parliament to pass these reforms swiftly,” Mr Kearney said.
Shadow-market trade promotions present additional consumer risks. These online subscription and lottery style products, promising cars and cash prizes without adequate transparency about ticket numbers and processes, are not only potentially harming small businesses but likely diverting consumer spending away from properly regulated charity and grant-focused lotteries that fund vital community services.
This new legislation seeks to clarify the definition of trade promotion gambling services, protecting both consumers and the charities that depend on a well-regulated sector.
“Our members are the backbone of local communities across Australia,” Mr Kearney said.
“They pay their taxes, employ local people, and play by the rules. We thank the Government for hearing their call, and we look forward to working with all parties to see these reforms through the Parliament.”
The lotteries sector has operated for more than a century within a well-regulated framework that has served communities, charities and governments well. These important reforms reinforce that framework for the next century.
About us:
About ALNA:
The Australian Lottery & Newsagents Association (ALNA) represents approximately 1400 small
businesses including newsagents and lottery outlets across Australia, serving approximately 2.5 million
customers daily in metropolitan, regional and rural communities. The whole sector includes over 4,000
small business retailers and employs an estimated 20,000 staE. ALNA advocates for the interests of its
members and works to ensure the sustainability and growth of the sector.
Contact details:
Ben Kearney, M:0417144994, E: [email protected]
Stephen Sealey, Pitch Public Relations M:0412 858 713 E: [email protected]
