SECTORS
Lotteries
We support businesses to understand the legal and regulatory environment for operating lotteries in Australia, whether online or retail-based.
An operator’s licence is required to conduct lottery-related gambling activities. In Australia, apart from monopolistic land-based licenses (which also permit online sales), the primary licence types available are a retail lottery licence, and internet gaming licence, issued in the Northern Territory. Occasionally licences to operate the keno product are also available.
To apply for a retail lottery licence or an internet gaming licence in the Northern Territory, operators must submit a proposal to Licensing NT. This is best done with the advice of local experienced counsel.
Monopolistic or similar licences have extensive licence conditions and restrictions, details of which are publicly available. In relation to a retail lottery licence or internet gaming licence issued in the Northern Territory, the licence conditions are entirely negotiable based on a range of factors, including licence term, licence payments, tax rates and other matters.
Licensing NT welcomes overseas applicants, particularly where they are experienced in the category, have a demonstrated track record and come from a well-regulated jurisdiction.
At the time of writing, the Commonwealth has announced a review of so-called “foreign matched” lotteries (which afford access to lotteries conducted overseas) and online keno. The review has the potential to influence regulatory change in this area.
How our gambling lawyers advise lottery sector operators
Our team are ranked in Chambers & Partners Global and Asia Pacific as leading experts in gambling law and regulation and our experts have led some of the most significant transactions in Australia.
We assist clients with:
Licence applications
Negotiation of licence terms and conditions
Product terms and conditions
Systems and system testing approvals
Responsible gambling policy development
Advertising and marketing approvals
Compliance frameworks and obligation registers
Policies and procedures
Privacy policies and advice
Data protection
Staff training
Gambling compliance training
Through the Senet Compliance Academy , we offer comprehensive gambling compliance training, ensuring your staff remain compliant with Australia’s legal and regulatory standards. Our courses are designed to help businesses cultivate a compliance culture, protect against financial crime and reduce gambling-related harm.
Get in touch for a complete range of gambling law and advisory services
FAQ
Lottery Knowledge
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Lotteries are generally regulated at a state and territory level although federal law also applies to prevent the online sale of entries into certain lotteries, including scratch lotteries and other instant lotteries.
Lotteries are largely conducted under long dated monopolistic licences issued by state and territory governments which permit the sale of tickets online and through authorised resellers in a retail environment (predominately news agencies). Subsidiaries of The Lottery Corporation hold the majority of these licences. Western Australia is one exception where Lotterywest, a statutory authority, conducts such operations.
State-based gambling regulators, which include Liquor and Gaming New South Wales, the Victorian Gambling and Casino Control Commission and the Queensland Office of Liquor and Gaming Regulation, regulate these operations.
Lotteries may also legally be conducted online under licences issued, and regulated, by Licensing NT.
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Lotteries licensees can offer their approved lottery products through retail newsagencies, other approved retail venues, third-party agents, resellers and also online. Keno licensees can offer their products through retail venues and online (in the case of the ACT and VIC).
Digital-only operators licensed out of the Northern Territory offer their products through websites and apps.
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Lotteries are subject to relatively high state and territory taxation rates.
For example, in the key States of Victoria, New South Wales and Queensland, respectively, the rates are 79.40% of player loss where GST is payable and 90% of player loss where GST is not payable, 76.918% of player loss (player subscriptions net of prize liability) less GST payable on subscriptions and sales commissions and 73.48% of monthly gross revenue for declared lotteries (with lower rates for instant scratch-its and soccer pools).
By contrast, taxation of keno across the same three key States is 24.24% of player loss (taxed as a point of consumption tax in relation to the Victorian keno licensee and any licensee outside of Victoria selling keno tickets into Vic), 8.91% of player loss (increasing to 14.91% where player loss exceeds AUS $86.5 million) and 29.40% of monthly gross revenue after deducting any casino commissions. Various states also set minimum player returns.
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Retail lotteries are largely conducted under long-dated monopolistic licences issued by state and territory governments which permit the sale of tickets online and also through authorised resellers in a retail environment (predominately news agencies). Subsidiaries of The Lottery Corporation hold the majority of these licences. Western Australia is one exception where Lotterywest, a statutory authority, conducts such operations.
Lotteries are also offered online under licences issued, and regulated, by Licensing NT. There are a number of operators in the market conducting online sales of lottery products under licences issues in the Northern Territory.
The Federal Government has recently commenced a review into online foreign-matched lotteries (which enable Australians to access lottery draws conducted overseas) and online keno. The outcome of that review will shape the future of these product offerings.
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Yes, lotteries are popular in Australia. Lotteries are generally offered under exclusive licences granted to provide land-based and online lottery products in each state or territory which are typically long-dated. Aside from Tasmania (which operates under renewable five-year permits linked to Victorian and Queensland licences) and WA (where lotteries are owned and operated by the State), the expiry dates range between 2028 and 2072.
Most lotteries licences, being exclusive, enable lottery tickets and other lottery products (including instant lottery tickets) to be sold in retail venues (newsagencies and other approved retail venues) and also online in some jurisdictions. State and territory lotteries engage in pooling arrangements pursuant to what is known as ‘bloc agreements’, under which jackpots are pooled, making the customer offering more attractive.
Additionally, a number of ‘foreign matched lotteries’ operate in the Australian market under internet gaming licences issued by the Northern Territory Government. These lotteries offer access to prominent lotteries in the USA and other jurisdictions. At the time of writing, these arrangements are subject to a Federal Government review and it is possible that regulatory changes will be made.Legislation prohibits bets being taken by a Corporate Bookmaker on the outcome of a lottery (referred to as a ‘synthetic lotteries’).