WLA Reports 4% Global Sales Increase; Releases Position Paper on Illegal Gambling …and More!

WLA Reports 4% Global Sales Increase; Releases Position Paper on Illegal Gambling …and More!

UK Government Considers Restrictions on Lottery Betting

The UK government has launched a consultation on prohibiting betting on the outcome of non-UK versions of the EuroMillions, citing fears that the lines between the National Lottery and betting are becoming blurred.

While the UK Gambling Act of 2005 prohibits the offering of bets on any lottery which “forms part of the National Lottery,” EuroMillions remains technically a separate game in each participating jurisdiction.

Furthermore, the UK government expressed concern that since bet-on-lottery operators are not obliged to fund good causes, they may be able to entice consumers away from the National Lottery, with the potential consequence of a negative impact on returns to good causes.

Lottery betting operator Lottoland, however, is arguing that UK EuroMillions has remained unaffected by the operator’s entrance in the UK market in September 2015.


Lottovate to Go Live in The Netherlands and Norway

Lottovate, a wholly owned subsidiary of ZEAL, is planning to introduce an innovative social lottery for Dutch consumers by Q3 2017.

“This new lottery product will be mobile-first and will aim to connect customers to social communities and good causes. By combining jackpots and social aspects, ZEAL is confident that this unique product will reach a wider demographic than traditional lottery,” the company stated in a press release.

In Norway, Lottovate will launch an innovative charity lottery in collaboration with UNICEF Norway.

Earlier in March, ZEAL-owned MyLotto24 Ltd. launched a licensed lottery betting business in Ireland, allowing customers to bet on the outcome of several lottery draws.

Due to a large prize pay-out of €15m, ZEAL posted significantly lower revenues and profits in Q1 2017 compared to the same period in the previous year. The company’s underlying business performance, however, remained strong.


Live Casino Provider Evolution Gaming Signs Deal with Nederlandse Loterij

Evolution Gaming, a leading provider of live casino solutions, has announced that it has signed an agreement with Nederlandse Loterij, operator of the Dutch State Lottery and numerous other gaming brands.

Bas van de Bunt, Director Online & Business Development at Nederlandse Loterij, commented: “We wanted to work with a market-leading provider with a proven track record of delivering first-to-market advantage in re-regulated jurisdictions. Evolution has achieved this a number of times for major licensees in new markets across Europe.”

According to its recently published Q1 figures (audiocast here), Evolution Gaming has seen spectacular growth, reporting a 60 percent increase in revenues to €39,7m (€24.8m) as well as a 65 percent increase in EBITDA to €17.0m (€10.3m).

Technological advances, as well as general bandwidth increases, have made the live gaming segment increasingly popular with punters over the last few years. This undoubtedly explains the interest of Nederlandse Loterij to expand into this particular market segment as soon as the regulated Dutch online market opens – which is now expected to occur in the second half of 2018 or early 2019.


WLA Reports 4% Sales Increase; Releases Position Paper on Illegal Gambling

In 2016, full-year on full-year lottery sales grew by 4% globally, doubling the 2% full-year on full-year increase in worldwide sales reported in 2015, according to the World Lottery Association (WLA):

“Solid performances in the North American and Asia Pacific markets, which reported growth slightly above the global average, provided the foundations for the 2016 end-of-year results. In other markets, burgeoning sales in Africa were offset by a contraction in sales in Latin America. Overall, the 4% year-on-year increase in worldwide sales was a little below five-year average global growth of 5.7% […]

In Europe, growth ticked down over the final quarter of 2016, resulting in an aggregate increase in sales of 2.6% for full year 2016 against full year 2015.”

In related news, the WLA also published a position paper on the harms of illegal gambling. According to the WLA:

  • Illegal gaming undermines authorized lotteries’ efforts to contribute to public good.
  • Illegal gaming has little regard for the safety and security of players.
  • Illegal gaming unlawfully infringes on licensed operators’ intellectual property and territorial markets.
  • When not properly regulated where the customer is located, illegal gaming can be a source of funds for organized crime and a platform for money laundering.


Other News

Lottery betting games operator Multilotto has acquired a remote gaming license from the Republic of Ireland National Excise Licence Office.


Digital advertising is increasingly important to lottery operators.


The European Parliament’s Culture and Education Committee decided that gambling and lottery advertising should continue to be excluded from the scope of the revised Audiovisual Media Service Directive (AMSD), keeping the regulation of such advertising a competency of the individual member states.


One of the world’s oldest lotteries, Det Danske Klasselotteri A/S, has launched its first new product since 1753. As of 24th April 2017, all Danes can purchase Nabolotteriet (“Neighbor Lottery”) on their smartphones or on the lottery’s website.


Danish operator Danske Spil has been fined DKK1.2m for alleged lapses in its anti-money laundering protocols.


Secondary lottery provider Lottoland has taken a stake in Australian lottery operator Jumbo Interactive.


Class action claim foundation Loterijverlies has lost its court case in which it sought to prevent the Dutch State Lottery from offering a free draw to compensate past participants for the operator’s misleading advertising practices.


Yet another class action claim foundation, funded by Litigation Investments, has started proceedings against the Dutch State Lottery. The settlement that was offered to lottery players, on account of the operator’s misleading advertising practices, should have been far more generous.


The South Korean Ministry of Strategy and Finance recently decided to allow punters to buy Lotto, the most popular lottery ticket in the country, online by the end of 2018.


First-quarter lottery sales have jumped 4.9% in China.


The US state of Maryland has awarded Scientific Games a new ten-year contract to continue operating the Maryland Lottery after dismissing complaints from the two losing bidders for the tender.


The Texas House of Representatives passed a bill that would allow lottery winners to remain anonymous.


Brazil’s federal government is proposing to privatize the country’s lottery sector.


Co-operation among Latin American lotteries would be beneficial to the entire sector, according to Tiburcio Perdomo, commercial director for the National Lottery of the Dominican Republic.