Egaming blurs line between lotteries and betting, says UK parliament
British regulator ordered to look at proposals which seek to put "clear blue water" between lottery and gambling products
The growing popularity of online gambling is “removing the distinction” between betting and lottery products and needs to be urgently addressed, a UK parliamentary committee has warned.
According to a report published by the Culture, Media and Sport Committee yesterday, a series of new online products, which “look and feel like lotteries” but have no obligation to return money to good causes, has led to a “concerning” overlap between society lotteries and betting.
The report follows a 12-week consultation period in which both Camelot and the DCMS Committee raised concerns over a rise in betting opportunities based on international lottery draws.
As a result, the Committee has ordered the Gambling Commission to review three proposals submitted by UK National Lottery operator Camelot, including an extension to the current ban on betting on the National Lottery to include all UK licensed lotteries.
The two other recommendations were a requirement that operators obtain a lottery licence in order to offer lottery-based bets and an improvement in the clarity of marketing of products with the words ‘lotto’ or ‘lottery’ removed from the title of betting markets.
“Like Camelot and the Gambling Commission, we are concerned that the evolution of online gambling is removing the distinction between society lotteries and betting,” the Committee concluded.
“We recommend that the Gambling Commission advise the Government on all three measures recommended by Camelot, to determine which would be most effective in reducing consumer confusion.
“We see no reason why the Gambling Commission and the DCMS should not press ahead to be ready with proposed changes for the new Government soon after the general election, given the lack of party political divisions in this area,” the Committee added.
Speaking to eGaming Review this morning, a spokesperson for the Gambling Commission welcomed the report, which also recommended new legislation for “umbrella lotteries” and more flexibility given to how new start-up lotteries can pay the minimum 20% charitable donation.
“In our role as the government’s statutory adviser on gambling and its regulation, we will be working to support DCMS in considering the Committee’s recommendations,” the spokesperson added.
Meanwhile a spokesperson for Camelot told eGR it was pleased the Committee had recognised “the growing threat posed to the lotteries sector as a whole by encroachment from gambling operators”.
Camelot had submitted a number of examples of what it perceived to be encroachment, such as MyLotto24.co.uk, run by German operator Tipp24, and Coral’s tie-up with the Health Lottery, which enables customers to bet on the outcome of Health Lottery draws.
Camelot also highlighted a range of scratchcards offered by Coral which it said “further blurred the line” between betting and lotteries due to the cards carrying images of horseracing and Coral making a 20% donation to charity.
While Coral declined to comment on the issues raised, Tipp24 said it had worked closely with the Gambling Commission to ensure its products were marketed as bets and not lotteries.