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The Australian government has announced a review into the regulation of online keno and “foreign-matched lotteries”, the latest potential crackdown on the gambling industry recommended by a parliamentary committee.
The federal ministers for communications and social services said in a joint statement on Monday (July 15) that the review will assess the “impact of these types of lotteries on the community and whether changes to regulations are required”.
The review pre-empts a long-awaited government response to a separate committee’s earlier, unanimous support for a complete ban on gambling advertising and the formation of a national online gambling regulator/licensor, alongside dozens of other reforms.
An issues paper has been released to inform the lottery review, whose terms of reference include identifying the “nature and size” and impacts of the keno and foreign-matched lottery segments, case studies of associated problem gambling, extending credit card and cryptocurrency bans to these segments, and whether online lottery exemptions in general are sustainable in terms of harm mitigation.
“The growth and availability of online keno and foreign-matched lotteries is [sic] particularly concerning,” communications minister Michelle Rowland said in Monday’s statement, referring in particular to high-frequency draws for the former.
“It is important to understand the impact these two products are having on the community, including vulnerable Australians and small businesses.”
Last October the Senate Environment and Communications Legislation Committee released a report that backed the passage of a bill banning credit card use when gambling online.
However, the committee expressed concern that the ban would not extend to online keno, which is classified as a lottery, and recommended a review be launched into the product and its exemption from a ban applying to online casino services.
Its recommendation said the review should “consider the potential for how credit and digital payment bans and other harm reduction policies may be applied to keno-type lotteries”.
Foreign-matched lotteries, which fund local winnings through winning purchases in foreign lotteries, have expanded their business and advertising footprint in Australia, thereby challenging monopoly lottery operations across the country.
Operators such as The Lottery Office appear to have filled part of the market vacuum left by synthetic lottery operators such as Lottoland, whose insurance-backed piggybacking on overseas draws threatened retail lottery market share and led to a federal ban on synthetic products in 2018.
In a separate example of regulatory pushback, the Victoria state government announced on Friday that a mandatory closure period from 4am to 10am will apply for all “gaming machine areas in pubs and clubs”, effective August 30.
The daily six-hour closure will protect the small number of gamblers who are “at a much higher risk of experiencing gambling harm” during this window, the statement said.
“These reforms provide an important break in play, so patrons can ‘get out of the zone’ and be more aware and informed about their behaviours,” it said.
“These mandatory closure periods are also aimed at curbing the practice of some venues staggering opening hours to encourage gaming with no breaks.”
The restriction will not apply to Crown Melbourne, the state’s only casino.
The six-hour closure was flagged in July 2023 as part of a first-tranche package of problem gambling mitigation measures.
