Lottoland

[Diamond_Jim 11,741]

The ads during the tennis prompted me to look at Lottoland.

This is the company that allows "virtual" participation in foreign lotteries via the making of a bet.

In simple terms they bet you that your numbers will not come up. The price of the bet is the equivalent of a lottery ticket.

The payout if your bet is successful is similar to that which you would have won in the relevant lottery. Ultimately they take out an insurance policy to cover the chance of you winning. (Given that insurance is ultimately betting ... it is seemingly appropriate.)

Anyway my discussion point is that local lotteries pay big taxes, support hospitals etc. Money from Lottoland goes to a UK outfit.

If successful they have the ability to severely impact local lotteries. They must be making some money as Manly in the NRL have agreed to change the name of their stadium to Lottoland

Another example of disruptive marketing. Fascinating

 

[Wrecker45 3,378]

On 2/3/2017 at 6:33 PM, Diamond_Jim said:

The ads during the tennis prompted me to look at Lottoland.

This is the company that allows "virtual" participation in foreign lotteries via the making of a bet.

In simple terms they bet you that your numbers will not come up. The price of the bet is the equivalent of a lottery ticket.

The payout if your bet is successful is similar to that which you would have won in the relevant lottery. Ultimately they take out an insurance policy to cover the chance of you winning. (Given that insurance is ultimately betting ... it is seemingly appropriate.)

Anyway my discussion point is that local lotteries pay big taxes, support hospitals etc. Money from Lottoland goes to a UK outfit.

If successful they have the ability to severely impact local lotteries. They must be making some money as Manly in the NRL have agreed to change the name of their stadium to Lottoland

Another example of disruptive marketing. Fascinating

 

It's my understanding Lottoland (Aust) have taken out an Australian bookmakers license. So I assume they are still being taxed heavily. 

 

[Straight Sets Simon 23,113]

Just what the world needs, gambling on lotteries.

[Diamond_Jim 11,741]

2 hours ago, Wrecker45 said:

It's my understanding Lottoland (Aust) have taken out an Australian bookmakers license. So I assume they are still being taxed heavily. 

 

Depends a lot on what State they are in as to who gets the taxes and the amount of those taxes.

According to this extract the taxes on lotteries are much higher than on bookmaking.
" Lotteries are taxed more heavily than other forms of gambling, with tax rates on player loss ranging from 45 to 90 per cent (Australian Treasury 2008). Average tax rates for other forms of gambling range from 20 to 35 per cent of player loss (Productivity Commission 1999a)."

https://taxreview.treasury.gov.au/content/FinalReport.aspx?doc=html/publications/Papers/Final_Report_Part_2/chapter_e7-2.htm

26 minutes ago, Clint Bizkit said:

Just what the world needs, gambling on lotteries.

Yep...who would have thought it........ and what will they come up with next !

[Diamond_Jim 11,741]

Just came across another business disrupter that I had not heard of before.

They are called Lemonade Inc and they are a peer to peer insurance agency. Basically it facilitates groups of like situated people or businesses to "insure each other."

https://en.wikipedia.org/wiki/Peer-to-peer_insurance

Fascinating concept and another example of the web driving new business models

Edited February 14, 2017 by Diamond_Jim
grammar

[Wrecker45 3,378]

On Tuesday, February 14, 2017 at 6:40 PM, Diamond_Jim said:

Just came across another business disrupter that I had not heard of before.

They are called Lemonade Inc and they are a peer to peer insurance agency. Basically it facilitates groups of like situated people or businesses to "insure each other."

https://en.wikipedia.org/wiki/Peer-to-peer_insurance

Fascinating concept and another example of the web driving new business models

Outside of drinking booze, loving my family and supporting the dees...

Insurance and gambling are my expertise. The above model is too risky for mine. Public Liability  claims are few and far between but have massive payouts.

$20m cover is standard. If p2p businesses want to take that risk on good luck to them.

[Diamond_Jim 11,741]

Interesting to see that Western Australia is now going to legislate against Lottoland due to its impact on their local State Lottery.

"Betting agencies such as Lottoland could soon be banned in Western Australia, in response to a big drop in Lotterywest revenue.

Lotterywest figures show a significant drop in the number of West Australians buying Lotto tickets, with sales revenue down by more than $60 million last financial year.

One of the reasons for the revenue drop is believed to be the emergence of online lotteries such as Lottoland which allow people to bet on the outcome of local and overseas draws, rather than purchasing a ticket."

 

Anybody heard about any other business disrupters on the horizon. I find this whole area fascinating.

http://www.abc.net.au/news/2017-09-16/wa-lottoland-ban-likely-premier-defends-lotterywest/8952130

Edited September 24, 2017 by Diamond_Jim

[La Dee-vina Comedia 16,394]

On 2/6/2017 at 2:55 PM, Wrecker45 said:

It's my understanding Lottoland (Aust) have taken out an Australian bookmakers license. So I assume they are still being taxed heavily. 

 

Lottoland is licensed in the Northern Territory which only taxes bookmakers on bets on racing. Lottoland is therefore not paying any gambling taxes (unless it also has a horse betting business on the side). That's one reason why traditional betting companies (eg, Tabcorp) don't like them. Anyway, due to Federal legislation, Lottoland will be unable to take bets on lotteries from the end of this year. Personally, I think that's a good thing. 

[John Crow Batty 8,255]

I assume anyone here who wins a foreign jackpot will be taxed at the highest rate on whatever they won. Lotteries here are pre taxed. I doubt the ATO would recognise lottery tax paid in another country or give any credit for it. BTW has any Australian ever won a major jackpot through Lottoland?

Edited July 9, 2018 by america de cali