Offshore lotteries, online keno next in government crackdown

The review, which has begun with an issues paper, will assess the size of online keno and “foreign matched” (offshore) lotteries in Australia, their impact on the local market and the experiences of customers using these products such as loss of deposits or non-payment of winnings.

The government said it would assess whether credit and digital payment bans or other restrictions should be applied to these businesses. The review will exclude land-based products such as lottery tickets bought in newsagents and Keno played in pubs and clubs.

Keno, a game of chance where players choose numbers to win prizes, has traditionally been played in clubs and pubs but can now be played online in some states and territories. Foreign‑matched lotteries allow Australians to access lottery draws conducted overseas.

The Lottery Office, for example, sells tickets to its American “proprietary” lotteries known as the USA Power Lotto and USA Mega Lotto. It then buys matching tickets in the American Powerball and Mega Millions lotteries at a place in Oregon called The Pit Stop Sports Bar and Grill.

When a ticket wins in the US, The Lottery Office collects and pays identical winnings – it makes its money through a service fee that players pay the company to buy the tickets. It does the same in Europe and Britain. The business is a jersey sponsor for the NRL’s Gold Coast Titans.

Australian Lottery and Newsagents Association chief executive Ben Kearney said the review was an important step forward.

“Our members rely heavily on those well-run state lotteries as a key component of their businesses … it drives a lot of employment,” Mr Kearney said. “Those foreign match products are very different. It’s appropriate that they should be carefully considered as part of this process.”

Self-exclusion register

Ms Rowland’s announcement could infuriate online bookmakers still waiting on the outcome of a separate inquiry into their activities from last year.

The inquiry, chaired by the late Labor MP Peta Murphy, recommended the government ban gambling advertising on television, radio and social media platforms, changes to algorithms in gambling apps and the appointment of a federal minister dedicated to reducing online gambling harm.

Ms Rowland said on Sunday it was still working on its response, but gambling sources have speculated there is an intentional delay caused by pressure from media companies and sports bodies that rely on money from gambling ads. They believe the matter could be pushed until after the next election.

Measures to reduce online gambling harm introduced to date include the creation of a national self-exclusion register, BetStop, which has more than 22,000 Australians. Gambling sources with direct knowledge of the matter have said the service is being used in divorce settlements.

The government has also introduced compulsory customer identification pre-verification for new gambling accounts and last month banned the use of credit cards for online bookmaking.

It has also introduced new gambling messages on advertisements and requires all online wagering companies to send customers monthly activity statements outlining wins and losses.

Social Services Minister Amanda Rishworth said the government was committed to protecting families and the community from harm.

“This includes continuous review and work to address all drivers of gambling harm such as the regulation of online keno and foreign-matches lotteries,” she said.