## No Retreat – iGB
While the Emerald Isle has served as a successful trial for the lottery wagering industry’s collective lobbying tactics, its most prominent advocate has encountered less smooth sailing in other areas after its offerings were prohibited in the UK and Australia. However, CEO Nigel Burrel informed Joanne Christie that this is not a justification for Lottoland to stray from its core market approach.
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**No Retreat**
Despite Ireland serving as a successful trial for the lottery wagering industry’s collective lobbying tactics, its most prominent advocate has encountered less smooth sailing in other areas after its offerings were prohibited in the UK and Australia. However, CEO Nigel Burrel informed Joanne Christie that this is not a justification for Lottoland to stray from its core market approach.
In recent times, Lottoland has frequently found itself on the losing side in its skirmishes with monopoly lottery operators.
Whenever the verbal conflict spills over into the political arena, politicians have aligned themselves with the monopoly operators, sometimes despite scant evidence that disruptive lottery wagering companies have caused any harm to their businesses or the public good.
But its recent struggle has not been so one-sided. In Ireland, where the company has only gained a relatively small market share, several high-profile politicians have publicly declared this year that lottery betting does not siphon funds away from the national lottery, as stock claims suggest.
At the outset, Ireland’s Finance Minister Pascal Donohoe stated in March, in response to a query from the legislature, that there was no proof that lottery wagering “had a substantial effect on the national lottery.” Thereafter, Minister for Gambling David Stanton expressed similar views when he declined to incorporate a prohibition on lottery wagering in the nation’s forthcoming updated gambling regulations.
These developments are “highly motivating,” stated Nigel Birrell, Chief Executive Officer of Lottoland.
“It truly strengthens our position when you have individuals like them stating what we’ve been advocating for years,” he remarked.
“It’s simple for politicians to repeat the same catchphrases, and I genuinely welcome the fact that these two Irish officials have actually considered it, examined the data, and declared there’s no evidence to suggest [we’re diverting funds from charitable organizations]. It might not have been politically advantageous for them to actually state that.”
The positive signals emanating from Ireland could also suggest that collective action undertaken by the lottery wagering sector may be yielding results. Ireland serves as a test case for the European Lottery Betting Association, which was established last July by Lottoland, MyLotto24, Multilotto, Legacy8, and LottoGo to prevent further prohibitions on lottery wagering following those implemented in Australia and the United Kingdom.
The organization has initiated a public relations campaign in Ireland and commissioned independent research, which was ultimately cited by the aforementioned political figures.
Swedens Predicaments…
However, outside of Ireland, Lottoland has not had a smooth run with regulation this year. In June, Sweden’s gambling watchdog Spelinspektionen penalized it 700,000 Swedish kronor (£52,276) for violating its licensing terms.
Birrell is critical of the approach, with both operators taken aback by the pronouncements, just a week after the regulator revoked Global Gaming’s permit in the nation.
“We only found out about it when we saw it on the website, so we don’t necessarily agree.”
“Sweden is obviously quite new, but they seem to just be issuing [penalties] without discussion. We had been talking to them about the products in question and had taken them down, even though we still felt they were probably legal and allowed. So it was good, we thought, ‘Let’s take them down and have a reasonable discussion with them,’ and then this fine came out, so we are reviewing our stance.”
He said that if the Swedish regulator wanted to build a good relationship with operators, it should look to the UK’s method. “The UK does it in a more gradual way. They’ll contact you, [the process] will usually go on for months. You have the right to discuss and appeal, and it’s only made public after the final decision is made.”
However, he added: “There might be some issues with the UK market as well.”
I am certain Sweden will achieve stability, however, it’s premature to make definitive pronouncements, as the controlled market only commenced in January. A significant number of permits were rapidly issued.
… and the Land Down Under
The regulatory landscape for Lottoland in Australia appears far from settled. Following a prohibition in January, the organization was compelled to withdraw all its lottery wagering offerings in Australia and introduce a collection of financial market-based accumulative prize wagering products.
Lottoland’s rivals in Australia promptly voiced their disapproval of these novel games, and in June, the Australian Communications and Media Authority (ACMA) determined that some constituted games of chance and consequently prohibited them.
Lottoland swiftly declared intentions to initiate legal proceedings against the ACMA in the High Court.
“The ACMA is challenging our operations, and I believe this is clearly being instigated by Tatts/Tabcorp and newsagent proprietors. These individuals will not cease their efforts until we are expelled from the market, and I believe this reflects poorly on Australia. They are permitting vested interests to eliminate competition, and I consider it to be highly protectionist. It incites my ire.
“However, we will contest this, as we possess hundreds of thousands of patrons in Australia who desire our offerings, and we will exert our utmost efforts to fulfill their requirements.”
Perhaps unexpectedly, Birrell stated that even though its primary lottery wagering products are no longer accessible, Australia remains one of Lottoland’s top three markets, alongside the United Kingdom and Germany.
While numerous rivals strive to oust them from the marketplace, the firm remains resolute, perhaps the key to their triumph. Consequently, it’s somewhat unexpected that Lottoland hasn’t transitioned to a messaging platform in Australia, which would enable them to continue providing players the opportunity to participate in significant US lottery draws, which are highly sought-after in Australia.
When inquired about why they haven’t taken this action, particularly considering other synthetic lottery behemoths have altered their model to conform to local rules, Birrell stated, “We presently lack a messaging license, but we’re not dismissing it.
“We must adjust to the regulatory landscape. We may not concur with it, but that’s the reality, and if the regulatory landscape hinders you from offering lottery wagering as you desire, then we need to adapt. Messaging, broker, any of those kinds of models are on the table.”
American Aspirations
Birrell stated this is especially true in the US. “In the US, we’re concentrated on the messaging side, potentially in New Jersey. We clearly need to obtain a license there, so that’s something we’re examining. We understand we can’t offer lottery wagering there at this juncture. Hopefully, the law will progress, but messaging will definitely be our focus in the US.”
Nevertheless, he believes this is more of a stepping stone than the ultimate objective. “The profit margins on messaging are clearly not as substantial as lottery betting.”
I believe Messenger could provide us with a strong position in the marketplace, which is a lucrative enterprise in itself, and then we can advocate to try and permit lottery wagering and open up the market for it. Naturally, Messenger’s market is large enough, with enough individuals, to be very profitable.
While North America is undoubtedly the landmass everyone is observing right now, Lottoland has recently also expanded its operations to the entirely different, but in some eyes equally promising, landmass of Africa, launching its product in South Africa. Thus far, Birrell states South Africa has been a slow-growing market.
“South Africa has been a very slow start. We haven’t invested too much marketing capital, just to observe how it progresses.”
Birrell has mixed opinions on the broader potential of Africa. “It appears like Africa is the hot topic at most of the conferences we attend these days. But no one seems to be making a breakthrough. I think some legal frameworks are a bit unpredictable in terms of regulation – they just keep altering their stance on tax on a whim, so you must be cautious about that.
“But I believe lotteries are a good fit for Africa. We tend to have the chance to win large prizes with very small stakes, and given the economic situation there, people can afford to spend a few pounds on a lottery ticket.
“Of course, it’s the future, but we’re not spending too much time on it at this point. We have a lot of work to do in the key markets where we’re active.”
Its more strategic to focus on nations like Sweden, a prosperous country with higher returns, rather than the African continent. We’re only present in thirteen countries, so we don’t aim to be all things to all people. We simply want to thrive in the regions we operate in, rather than overextending ourselves.
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