In my opinion, the campaign run by Lottoland has taken a nasty turn with this press release issued today:
LOTTOLAND AUSTRALIA CALLS ON FEDERAL GOVERNMENT TO REVIEW PROPOSED BAN IN LIGHT OF PEAK BODY REVELATIONS
May 1, 2018
The CEO of Lottoland Australia, Luke Brill, today called on the Federal Government to review its proposed legislation banning online lottery betting in light of revelations that the body supposedly representing newsagents is financially broke – and has misled the public about its membership numbers.
Mr. Brill said that the previously unpublished documents, which had been obtained from the Australian Securities and Investments Commission (ASIC), confirmed that the parent company behind the Australian Lottery and Newsagents Association (ALNA) was facing financial ruin.
“These ASIC documents raise serious questions about the financial situation at ALNA and its ability to continue to operate as a going concern, let alone to represent the interest of its members,” Mr. Brill said.
“According to ALNA’s own auditors, the organisation is in financial disarray, with the auditors telling ASIC that there is ‘significant uncertainty’ as to whether the group will continue as a going concern.”
Mr. Brill also said that ASIC records confirmed that the Federal Government had been misled into believing that ALNA represented the views of 4,000 newsagents nationally, when it fact its membership numbers are substantially lower.
“We’re shocked and disappointed to find out that a body that the Government believes has over 4,000 newsagents nationally as members has in fact only 707 paid members – about 80 per cent less than claimed,” he said.
“This raises major questions about the true intent of ALNA and whether it has misled not just the Government and others MPs, but whether it has also misled the public.”
Mr. Brill accused ALNA of acting against the interests of newsagents by advocating for laws that would hand Tatts (now Tabcorp) an unprecedented monopoly, and appealed to the Government to reconsider the proposed legislation before it was too late.
“Rather than address the shocking state of its financial affairs, ALNA has inexplicably taken part in a $5 million lobbying campaign to convince the Government to ban online lottery betting, which will leave newsagents at the mercy of a Tabcorp monopoly,” he said.
“Given these revelations, we are asking the Government to put a stop to the planned legislation and start listening to newsagents on the ground.”
ALNA has responded with this release:
Response from the Australian Lottery and Newsagents Association (ALNA)
1 May 2018
Adding another string to their ruthless bow of propaganda and deception, Lottoland have twisted facts and figures about Australia’s national industry body for newsagents.
The Australian Newsagent’s Federation (ANF) Board of Directors who trade as The Australian Lottery and Newsagents Association (ALNA) has instructed their lawyer to investigate all legal avenues against the false allegations contained in Lottoland’s press release dated 1st of May.
Adam Joy, CEO of the Australian Lottery and Newsagents Association (ALNA) said, “The Australian Lottery and Newsagents Association is solvent and represents approximately 2,000-member small businesses. Any rumours to the contrary are unequivocally false and salacious. We have always been transparent and have nothing to hide. Our accounts are independently audited every year and are all available through ASIC, and clearly identify the solvency of our organisation.
“There has not been any misrepresentation of figures of any kind by ALNA – only by Lottoland who have been aggressively spreading defamatory rumours based on inaccurate and incomplete information.”
Lottoland has continuously worked to mislead consumers, governments and the general public, and are now seeking to maliciously defame the very same organisation they sought to conduct business with on three separate occasions.
“We find it ironic that Lottoland are attacking an honest Australian not-for-profit small business association when Lottoland’s very existence and history are based on stunts, loopholes and deception. Today’s defamatory comments further demonstrate that it is not the kind of business Australia deserves.
“From facing legal action for illegally and deliberately misusing trademarks of other businesses, being misleading regarding the winnings available, denigrating newsagents and then wanting to move their customers to Lottoland, and now making false allegations about the industry body that represents approximately 2,000 of these Australian small businesses, Lottoland continue to operate in a highly unethical manner,” explained Adam Joy, CEO of the Australian Lottery and Newsagents Association (ALNA).
Lottoland are based in the tax haven of Gibraltar, and have been granted a licence that allows them to run its Australian online business out of the Northern Territory while only taxing its gross profits earned on punting on horses, trotting and greyhound racing — three categories Lottoland doesn’t even operate in.
And they do all this while operating outside of the much tighter regulations, consumer protections, and higher taxes that official regulated lotteries adhere to.
Here are the facts:
“ALNA are the only national association representing newsagents and lottery agents in every state and territory of Australia, and are the only newsagents’ association with ACCC national collective bargaining authorisation.
“The Australian Lottery and Newsagents Association has a strong relationship with government for this very reason, and is known as a credible, effective organisation – because we are,” stated Mr Joy.
ALNA has clearly articulated to the government that we represent approximately 2,000 small businesses. ALNAs documents submitted to the government in relation to the concerning issue of lotto betting point to there being over 4,000 small businesses operating as lottery retailers whose customers have been impacted and mislead. As the only authorised national body it is not uncommon for us to refer to industry statistics.
Mr Joy explained, “ALNA only ever represents the position of its members and its board, which are newsagents and lottery agents across Australia. And in the interests of Australia’s newsagents and lottery agents, we independently and fairly advocate for them based on their feedback and requests. Our concerns regarding Lottoland have always been based on our members’ feedback, and independent of any other business.”
Auditors have determined that ALNA fairly present its affairs in all material aspects and have a clean report that is transparent and thorough and has disclosed all information required.
The last line of the extract that has been included in Lottoland’s misleading media release, states that ‘the auditors opinion has not been modified in respect of this matter’. For those who may not understand accounting terms, the Auditors are actually stating that the ANF (trading as ALNA) is solvent and is trading within the confines of the law. Any suggestion to the contrary by deliberately misrepresenting ANF financial information is unethical and defamatory. The correct information is publicly available through ASIC.
The false comments made about ALNA are in reaction to a soon-to-be-passed amendment to the Interactive Gambling Act, meaning the banning of betting on lottery outcomes. The Federal Interactive Gambling Act already makes it illegal to sell a scratchy online and play a poker machine online, and Lottoland’s business offering is another questionable model that is deemed inappropriate online. In other words, the main reason for the impending ban is consumer protection.
As Lottoland now faces the closure of the loophole that it operates in, it has pulled out stunt after stunt in desperate attempts to hoodwink the public.
Lottoland are an online wagering company and if they want to enter the lottery market, then they should consider a lottery license and completely change their product to one that is honest and operates within those much tighter regulations to offer consumer protections. Their business is operating out of a legislative loophole and their approach is tricky and dodgy, and ultimately one that consumers should be concerned about.
The Lottoland release and the media coverage they get, especially on News Corp. platforms, speaks to the tough work faced by ALNA representing newsagents. Getting Tatts engaged and then politicians was there work of ALNA, on the back of relentless attacks on and mocking of small business newsagents by Lottoland.