❓ WA Parliament QoN regarding Lotterywest's online gambling launch, covering revenue impact, responsible gaming, and operational details. The response provides estimates, comparisons, and justifications for the initiative.
AnsweredQoN 4630Legislative Assembly
QuestionView source ↗
Regarding online gambling launched by Lotterywest, I ask:
(a) what modelling has been undertaken to assess the actual revenue losses from Lotterywest to interstate internet gambling operations if Western Australia had not proceeded with online gambling by Lotterywest;
(b) will the Minister table this modelling; and
(i) if not, why not;
(c) in the last three financial years, how much revenue has Lotterywest lost to online gambling in other states;
(d) what amounts of revenue are likely to be generated by online gambling through Lotterywest this financial year and in the next five financial years;
(e) will the Minister please provide a comparison of requirements for online participation between Western Australia and other Australian states;
(f) what research and investigation was undertaken by Lotterywest into the way other states operate their online gambling processes;
(i) did this include the per week ceilings for each other state with online gambling; and
(ii) if so, what were they;
(g) what has been undertaken to prevent online cannibalisation of revenue;
(h) how did Western Australia arrive at a $200 per week ceiling;
(i) will the Minister table the original proposal Lotterywest put to the State Government regarding online gambling; and
(i) if not, why not;
(j) on what dates did Cabinet consider online gambling being launched by Lotterywest;
(k) on what date did Cabinet give final approval for online gambling being launched by Lotterywest;
(l) what responsible gaming measures have been taken into account when establishing online gambling in Western Australia;
(m) what were the results of any research undertaken into Lotterywest online gambling and the impacts on problem gambling and addiction;
(n) how will online accounts be set up and maintained and what identification processes will be required; and
(o) what action has been taken to prevent customers from opening numerous accounts for online gambling?
(a) what modelling has been undertaken to assess the actual revenue losses from Lotterywest to interstate internet gambling operations if Western Australia had not proceeded with online gambling by Lotterywest;
(b) will the Minister table this modelling; and
(i) if not, why not;
(c) in the last three financial years, how much revenue has Lotterywest lost to online gambling in other states;
(d) what amounts of revenue are likely to be generated by online gambling through Lotterywest this financial year and in the next five financial years;
(e) will the Minister please provide a comparison of requirements for online participation between Western Australia and other Australian states;
(f) what research and investigation was undertaken by Lotterywest into the way other states operate their online gambling processes;
(i) did this include the per week ceilings for each other state with online gambling; and
(ii) if so, what were they;
(g) what has been undertaken to prevent online cannibalisation of revenue;
(h) how did Western Australia arrive at a $200 per week ceiling;
(i) will the Minister table the original proposal Lotterywest put to the State Government regarding online gambling; and
(i) if not, why not;
(j) on what dates did Cabinet consider online gambling being launched by Lotterywest;
(k) on what date did Cabinet give final approval for online gambling being launched by Lotterywest;
(l) what responsible gaming measures have been taken into account when establishing online gambling in Western Australia;
(m) what were the results of any research undertaken into Lotterywest online gambling and the impacts on problem gambling and addiction;
(n) how will online accounts be set up and maintained and what identification processes will be required; and
(o) what action has been taken to prevent customers from opening numerous accounts for online gambling?
AnswerView source ↗
Answered
15 March 2011
Response time
28 days
Lotterywest advises:
(a) Lotterywest modelling has been based on information from New South Wales Lotteries (NSWL) suggesting they were incurring an annual loss of up to 0.6% of annual sales to the Oz Lotteries/Tattersall's internet lottery sales consortium. With NSWL annual sales totalling about $1.3 billion in 2008, this implied that up to $8m was lost revenue. Based on this information and the fact that WA's share of Lotto Bloc sales is approximately half that of NSW, it is estimated that Lotterywest is losing up to $4 million per annum to these other Internet lottery/gaming providers.
(b) Details of how the estimates were made are provided in the answer to (a) above
(i) Not applicable
(c) It has not been possible to get any accurate data on how much Lotterywest has lost to online gambling in other states or overseas in the past three financial years. Although some estimates have been made as described in answer to question (a), it is important to understand that such figures are only estimates and are not definitive.
(d) Lotterywest estimates online sales will account for about 0.5% of total sales this current financial year.
Based on the experiences of other Lotteries, it is expected that in the longer term internet sales could potentially account for approximately 3% incremental sales growth of up to $23 million per annum and contribute an extra $6 million per annum (by year 3) to be distributed to the beneficiaries specified in the Lotteries Commission Act
Overseas lotteries that have achieved higher growth from Internet sales have invariably done so as a result of introducing sports betting type products, instant game products and poker and other interactive games. Federal and State legislation prohibits Lotterywest from offering such products via the internet.
(e) Comparison of Internet Sales Features [see tabled paper no]
(f) Lotterywest undertook extensive investigation into how Lotteries in other jurisdictions operate their internet sales channels. The investigation included direct contact with, and visits to, various Lotteries.
(i) Yes
(ii) These are detailed in the comparison chart provided in answer to question (e).
(g) The Honourable member's question is not clear. If it is referring to the transfer of lottery purchases from Lotterywest's retail sales channel to the internet sales channel, then it is important to understand Lotterywest's main objective is to minimise leakage to interstate and overseas operators and to ensure that funds which could have been directed to its beneficiaries remains in Western Australia by offering WA players a local option.
The introduction of Play Online is largely a defence strategy, to ensure the proceeds from the sale of online lottery games remains in WA so that Lotterywest can continue to maintain support to the WA Community. Play Online is also being introduced to meet the increasing needs of the market which expects the convenience to be able to purchase lottery products online in the same way as the market expects to be able to purchase many other kinds of products and services via the internet.
The experiences of other Lotteries indicate that the introduction of Internet sales channel has an undetectable impact on the Retail Network.
The retail distribution network remains Lotterywest's priority as a critical element in the success of their business. Lotterywest remains focused on continuous improvement in providing services to their retailers.
(h) The $200 per week spending limit was arrived at by reference to other jurisdictions limits, responsible gaming practices and after consultation with key stakeholders including WACOSS and Centrecare, the specialist provider in gambling counselling in Western Australia.
Based on information obtained by Lotterywest, the New Zealand Lotteries Commission has the lowest maximum weekly spend limit of $150 for players purchasing via their internet sales channel and some other international operators apply no upper limits to how much a player can spend per week. Lotterywest deliberately chose a conservative and very responsible maximum player spend limit of $200 per week.
(i) No
(i) Lotterywest's submission contains commercially confidential information and it is not appropriate to make it publicly available.
(j) 22 June 2009
(k) 22 June 2009
(l) Responsible gaming measures into account by Lotterywest when establishing their Play Online service included the following:
· Purchase by credit card is not permitted. Players are required to set up a special Play Online account ("e wallet") and deposit funds into the account before being able to purchase a lottery entry.
· Players have access to a complete record of their transactions so they are able know how much they have spent. This feature provides players with improved information on their previous purchases and winnings
· Lotterywest has set a weekly upper spending limit ($200) on how much a player can spend on game entries. Furthermore, players are also able to nominate their own spending limits (lower than the Lotterywest upper limit) or to self exclude for defined periods of time.
· Lotterywest has applied other responsible gaming practices consistent with International Lottery Standards established by the World Lottery Association
· Lotterywest is committed to minimising risk for players by clearly stating a range of factual information relating to playing Lotterywest games:
o The odds to be displayed in any 'how to play' information and online
o Provision of 'Play Responsibly' information brochures and cards at retail outlets
o Carrying the 'Play Responsibly' message on the reverse of all tickets and the contact number for the Problem Gambling Helpline
o Ensuring that 'Play Responsibly' messages are on all in-store and print communication (posters, publications and print advertising), detailing the Problem Gambling Helpline and website
· Lotterywest is committed to a responsible gaming framework in partnership
with the World Lotteries Association and continues to provide players with information encouraging responsible play. Lotterywest aims to offer the highest standards of service and information to play responsibly.
(m) Lotterywest has not undertaken any specific research but information obtained from other lotteries and experts in the industry confirms that in fact, there are more controls and measures in place with lottery internet sales channels than with purchases via traditional lottery retail outlets. The internet channel allows the players to track how much they spend on Lottery products. The Problem Gambling Support Services in this state believe this feature will be of benefit to those with problem gambling and addiction.
Moreover, there is little evidence to indicate that purchasing lotto tickets creates problem gambling issues whether via retail or an online channel. The Productivity Commission has reported on a number of occasions that lotteries contribute very little to problem gambling statistics.
(n) To register to Play Online with Lotterywest a person must be a Western Australian resident and be 16 years of age or older. The Lotteries Commission Act specifies 16 as the age in this state when a person can purchase lottery products.
Before a Play Online account can be established for the player, he/she needs to register with Lotterywest and have their identity verified. The person can either register Online or Offline.
It takes only a few minutes for a person to register online. The person's identification will be automatically verified by Lotterywest's online verification tool. Once online verification is complete a temporary password will be emailed to the player to enable them to activate their Play Online account.
Online Registration
Lotterywest's online identification verification tool will check the person's identification against records which include their name, date of birth and residential address. To complete this process a person will also need to supply information from at least one of the following forms of identification:
· WA Driver's Licence
· Medicare Card
· Australian Passport
· Australian Visa (stamped in a non-Australian passport)
Offline Registration
A person can register offline if they do not have any of the required identification documents, or if they prefer not to register online. The Player simply needs to click on the 'Register Offline' button on the Play Online website, then download, print, complete and send (by post, fax or email), the Application for Registration form to Lotterywest. The person will also need to send Lotterywest copies of documents requested in the form. After Lotterywest has verified the person's identity and the offline registration is completed the person will be sent an email with a temporary password to enable them to activate their Play Online account.
Once registered a player will be able to make deposits to the credit of their Play Online account (e wallet) and purchase entries in various Lotterywest games and qualify for prizes.
· Deposits to a Player's Play Online account will be limited to a maximum of $200 per deposit
· Players Play Online account balance should not exceed $5,000. If balance exceeds $5000, player will be required to reduce balance before purchasing further entries
· A history of transactions (including deposits, withdrawals, entries purchased and prizes paid) will be provided
· A player can set a personal spending limit. Personal spending limits must be less than or equal to the Lotterywest maximum spending limit of $200
(o) Lotterywest has built numerous checks and balances into their systems, processes and procedures to minimise the possibility of customers opening multiple Play Online accounts. For security reasons, it is not appropriate to publicly detail all such control measures that have been put in place.
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http://www.rtlib.com
(a) Lotterywest modelling has been based on information from New South Wales Lotteries (NSWL) suggesting they were incurring an annual loss of up to 0.6% of annual sales to the Oz Lotteries/Tattersall's internet lottery sales consortium. With NSWL annual sales totalling about $1.3 billion in 2008, this implied that up to $8m was lost revenue. Based on this information and the fact that WA's share of Lotto Bloc sales is approximately half that of NSW, it is estimated that Lotterywest is losing up to $4 million per annum to these other Internet lottery/gaming providers.
(b) Details of how the estimates were made are provided in the answer to (a) above
(i) Not applicable
(c) It has not been possible to get any accurate data on how much Lotterywest has lost to online gambling in other states or overseas in the past three financial years. Although some estimates have been made as described in answer to question (a), it is important to understand that such figures are only estimates and are not definitive.
(d) Lotterywest estimates online sales will account for about 0.5% of total sales this current financial year.
Based on the experiences of other Lotteries, it is expected that in the longer term internet sales could potentially account for approximately 3% incremental sales growth of up to $23 million per annum and contribute an extra $6 million per annum (by year 3) to be distributed to the beneficiaries specified in the Lotteries Commission Act
Overseas lotteries that have achieved higher growth from Internet sales have invariably done so as a result of introducing sports betting type products, instant game products and poker and other interactive games. Federal and State legislation prohibits Lotterywest from offering such products via the internet.
(e) Comparison of Internet Sales Features [see tabled paper no]
(f) Lotterywest undertook extensive investigation into how Lotteries in other jurisdictions operate their internet sales channels. The investigation included direct contact with, and visits to, various Lotteries.
(i) Yes
(ii) These are detailed in the comparison chart provided in answer to question (e).
(g) The Honourable member's question is not clear. If it is referring to the transfer of lottery purchases from Lotterywest's retail sales channel to the internet sales channel, then it is important to understand Lotterywest's main objective is to minimise leakage to interstate and overseas operators and to ensure that funds which could have been directed to its beneficiaries remains in Western Australia by offering WA players a local option.
The introduction of Play Online is largely a defence strategy, to ensure the proceeds from the sale of online lottery games remains in WA so that Lotterywest can continue to maintain support to the WA Community. Play Online is also being introduced to meet the increasing needs of the market which expects the convenience to be able to purchase lottery products online in the same way as the market expects to be able to purchase many other kinds of products and services via the internet.
The experiences of other Lotteries indicate that the introduction of Internet sales channel has an undetectable impact on the Retail Network.
The retail distribution network remains Lotterywest's priority as a critical element in the success of their business. Lotterywest remains focused on continuous improvement in providing services to their retailers.
(h) The $200 per week spending limit was arrived at by reference to other jurisdictions limits, responsible gaming practices and after consultation with key stakeholders including WACOSS and Centrecare, the specialist provider in gambling counselling in Western Australia.
Based on information obtained by Lotterywest, the New Zealand Lotteries Commission has the lowest maximum weekly spend limit of $150 for players purchasing via their internet sales channel and some other international operators apply no upper limits to how much a player can spend per week. Lotterywest deliberately chose a conservative and very responsible maximum player spend limit of $200 per week.
(i) No
(i) Lotterywest's submission contains commercially confidential information and it is not appropriate to make it publicly available.
(j) 22 June 2009
(k) 22 June 2009
(l) Responsible gaming measures into account by Lotterywest when establishing their Play Online service included the following:
· Purchase by credit card is not permitted. Players are required to set up a special Play Online account ("e wallet") and deposit funds into the account before being able to purchase a lottery entry.
· Players have access to a complete record of their transactions so they are able know how much they have spent. This feature provides players with improved information on their previous purchases and winnings
· Lotterywest has set a weekly upper spending limit ($200) on how much a player can spend on game entries. Furthermore, players are also able to nominate their own spending limits (lower than the Lotterywest upper limit) or to self exclude for defined periods of time.
· Lotterywest has applied other responsible gaming practices consistent with International Lottery Standards established by the World Lottery Association
· Lotterywest is committed to minimising risk for players by clearly stating a range of factual information relating to playing Lotterywest games:
o The odds to be displayed in any 'how to play' information and online
o Provision of 'Play Responsibly' information brochures and cards at retail outlets
o Carrying the 'Play Responsibly' message on the reverse of all tickets and the contact number for the Problem Gambling Helpline
o Ensuring that 'Play Responsibly' messages are on all in-store and print communication (posters, publications and print advertising), detailing the Problem Gambling Helpline and website
· Lotterywest is committed to a responsible gaming framework in partnership
with the World Lotteries Association and continues to provide players with information encouraging responsible play. Lotterywest aims to offer the highest standards of service and information to play responsibly.
(m) Lotterywest has not undertaken any specific research but information obtained from other lotteries and experts in the industry confirms that in fact, there are more controls and measures in place with lottery internet sales channels than with purchases via traditional lottery retail outlets. The internet channel allows the players to track how much they spend on Lottery products. The Problem Gambling Support Services in this state believe this feature will be of benefit to those with problem gambling and addiction.
Moreover, there is little evidence to indicate that purchasing lotto tickets creates problem gambling issues whether via retail or an online channel. The Productivity Commission has reported on a number of occasions that lotteries contribute very little to problem gambling statistics.
(n) To register to Play Online with Lotterywest a person must be a Western Australian resident and be 16 years of age or older. The Lotteries Commission Act specifies 16 as the age in this state when a person can purchase lottery products.
Before a Play Online account can be established for the player, he/she needs to register with Lotterywest and have their identity verified. The person can either register Online or Offline.
It takes only a few minutes for a person to register online. The person's identification will be automatically verified by Lotterywest's online verification tool. Once online verification is complete a temporary password will be emailed to the player to enable them to activate their Play Online account.
Online Registration
Lotterywest's online identification verification tool will check the person's identification against records which include their name, date of birth and residential address. To complete this process a person will also need to supply information from at least one of the following forms of identification:
· WA Driver's Licence
· Medicare Card
· Australian Passport
· Australian Visa (stamped in a non-Australian passport)
Offline Registration
A person can register offline if they do not have any of the required identification documents, or if they prefer not to register online. The Player simply needs to click on the 'Register Offline' button on the Play Online website, then download, print, complete and send (by post, fax or email), the Application for Registration form to Lotterywest. The person will also need to send Lotterywest copies of documents requested in the form. After Lotterywest has verified the person's identity and the offline registration is completed the person will be sent an email with a temporary password to enable them to activate their Play Online account.
Once registered a player will be able to make deposits to the credit of their Play Online account (e wallet) and purchase entries in various Lotterywest games and qualify for prizes.
· Deposits to a Player's Play Online account will be limited to a maximum of $200 per deposit
· Players Play Online account balance should not exceed $5,000. If balance exceeds $5000, player will be required to reduce balance before purchasing further entries
· A history of transactions (including deposits, withdrawals, entries purchased and prizes paid) will be provided
· A player can set a personal spending limit. Personal spending limits must be less than or equal to the Lotterywest maximum spending limit of $200
(o) Lotterywest has built numerous checks and balances into their systems, processes and procedures to minimise the possibility of customers opening multiple Play Online accounts. For security reasons, it is not appropriate to publicly detail all such control measures that have been put in place.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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