One of the largest gaming and entertainment groups in Australia, Crown Resorts and Crown Bet are expected to officially release an online lottery until the end of the week. The lottery, which name is to be CrownLotto, is planned to be run by the corporate bookmaker CrownBet, an Australian online wagering company, which majority share is currently held by Crown Resorts.
A spokesman of CrownBet explained that the new product is to be launched in order for the Crown Resorts and CrownBet to face the increasing customer demand that is provoked by massive jackpots in overseas draws. The company’s spokesman also explained that the overall interest in online lotteries was expected to grow, so CrownLotto is aimed at entering this niche, rather than actually competing with traditional physical lotteries.
The step is to be undertaken by the operator in an attempt to reduce the market share of Lottoland, the Gibraltar-based online betting company, and finally become competitive to the already existing digital lottery ticket sales of Tatts Group.
Apart from that, CrownLotto’s upcoming launch will also come to face the competition of the global betting brand William Hill, which launched the William Hill Planet Lottery in July in collaboration with Lottoland. The company’s Australian lottery service provides local players with the opportunity to bet on global lotteries.
As mentioned above, the new online lottery operator, called CrownLotto, is planned to be launched until the end of this week in order to enter a direct rivalry with Lottoland. The latter’s weekly revenue has been estimated to no less than $1 million, so Crown Resorts and Crown Bet are now to enter the competition by releasing a lottery operator that is to be run in the similar manner, allowing its customers to place a bet on a lottery outcome, instead of simply purchasing an actual lottery ticket.
The mechanism of work of such a lottery is simple. CrownLotto would pay out the prizemoney equivalent in case that a player wins a jackpot or another prize, as if they had bought a winning ticket for a physical draw. The newly-established lottery is to compete with Gibraltar-based Lottoland, claiming it is to offer bigger prizes.
What is more, part of the soon-to-be launched lottery operator’s earnings are planned to be transferred by CrownBet to community causes. In addition, the new service is to be released by Crown Resorts in an attempt to make younger players in Australia more oriented to betting on the outcome of local and global lottery draws.
Lottoland’s launch in the Australian market back in 2015, drawn a lot of attention, due to the lower commission rate. The lottery options provided by the operator, have always been very popular among local customers, despite some criticism it had faced.
After Lottoland signed became one of the sponsors of the Melbourne Cup and also received naming rights to the National Rugby League club Manly’s stadium, Tatts Group took a legal action against the company, challenging the operator’s legal and intellectual property rights. According to the 2015 financial reports of Lottoland, which have recently been formally presented to the country’s corporate regulatory authority, an out-of-court settlement valued at AU$300,000.