Thursday 19. May, 2016

Western Australia Consumer Board Warns About Unlicensed Lottery Game

The consumer protection board in Western Australia, at the end of last month, issued a warning over Lotto Spring, which describes itself as the first social lottery in the world. However, the online lotto game which is being promoted in Western Australia, is unlicensed in the country.

The game has players bet on the outcome of lotteries around the world, such as EuroMillions, rather than being an actual lottery that people enter into. The game allows players to enter into a syndicate that pays out when any teammate in the syndicate wins, with the player who bet on the winning lotto line, being awarded the largest payout.

The game also offers a reduction or refund on the monthly fee or free tickets for referring other players. However, the game requires a license for this type of betting, which it does not hold.

“With Lotto Spring you aren’t offered the same protection or guarantees of payouts as you are when playing with lawful Australian lotteries and there may be issues in relation to taxation as payouts will be coming from overseas,” said Acting Commissioner for Consumer Protection, David Hillyard.

There has been at least one complaint to the consumer board from a customer who had unauthorised deductions from her bank account after she signed up online with Lotto Spring. Because the organisation is based overseas, she encountered some trouble in trying to resolve this matter.

Chief executive of Lotterywest, Paul Andrew, said that in addition to licensing issues with Lotto Spring, the lotto does not not offer any pluses for the WA community.

“Some of the new lotteries being offered are national or international betting operations with little or no proceeds returned to the WA community,” he explained.

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