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Operation of synthetic lotteries in NSW

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John Barilaro Deputy Premier Minister for Skills Minister for Small Business

Paul Toole Minister for Lands and Forestry Minister for Racing

Thursday, 5 October 2017


The Deputy Premier and Minister for Small Business John Barilaro and Minister for Racing Paul Toole today announced the NSW Government is considering options to restrict the operation of synthetic lotteries.

Mr Barilaro said the NSW Government has serious concerns about synthetic lotteries products.

“Synthetic lotteries do not have the same level of consumer protection as domestic lotteries,” Mr Barilaro said.

“Our concern is that many customers buy tickets in a synthetic lottery, believing they’re entering a lottery, when in fact they are instead betting on the outcome of that lottery.

“A domestic lottery has a guaranteed prize pool, and is bound by strict terms and conditions and robust regulations. A synthetic lottery, on the other hand, is no more than online gambling.

“The NSW Government is committed to standing up for local businesses and consumers and stemming the flow of lottery revenue out of the state.”

Mr Toole said synthetic lotteries were, despite their names, not actual lotteries.

“They are highly profitable online betting sites, often based overseas. Payment of winnings may rely on complex commercial arrangements between the operator and its insurer,” Mr Toole said.

“The conduct of synthetic lottery operators may breach existing wagering legislation and the NSW Government is currently considering options to restrict betting on these lotteries in NSW.

“Not all consumers who buy a ticket in the local lottery are happy to place bets through an online bookmaker based overseas, even if those bets are on the outcome of the same lottery.”

MEDIA: James Jooste | Deputy Premier | 0429 978 036 Ashley Gardiner | Minister Toole | 0429 063 494