Issue N22, 2008

May 29, 2008

New Zealand Online Lottery Launched

After months of debate and controversy, New Zealand Lottery has finally launched its online product. From this week, players will be able to buy their lottery tickets over the internet, as well as from retail stores around the country. Responsible gambling groups continued to protest the launch of mylotto.co.nz, where players can purchase tickets for Keno games, Powerball, Big Wednesday and Lotto, to name just a few.

Trying to calm these protests, NZ Lotteries Chief Executive, Todd McLeay said: “We have worked closely with the Government and our regulators to develop an online sales platform that minimizes the risk of problem gambling. All players will have to complete a registration process before they can purchase a ticket. There will also be set spending limits, and players also have the option of setting their own limits or exclude themselves from games.”

“Online play will allow the collection of better information about spending habits which has not been possible until now. This information will provide a real insight into the way New Zealanders use these products, and there will be an obligation on NZ Lotteries to act if a problem is detected," he continued.

It is estimated that online sales will not make up a very large proportion of overall sales for NZ Lotteries initially and the company said that it believed that the sales at retail outlets would continue to be its main source of revenue. Leahy said, however that “this additional online channel will enable us to better meet the demands of the ever-growing online community who prefer shopping via the Internet.”

Bettson Challenges Swedish Monopoly by Opening Retail Betting Shop

The Swedish gambling operator, Betsson, has managed to grab the attention of the local market by declaring that it will be opening a retail betting shop in Stockholm this week, despite protectionist laws. “We are taking this opportunity to challenge the Swedish gaming monopoly as we see betting shops as an interesting development of our business. Betting shops complement our online offering and our aim is to create more freedom of choice for our players,” said Pontus Lindwall, CEO of Betsson.

The new betting shop aims to provide a different type of gambling environment to that found in traditional Swedish betting shops run by Svenska Spel and ATG representatives. Bettson promised that players would be able to meet and socialize with other like-minded players, enjoy competitive odds and glean useful information from friendly, knowledgeable staff.

Bettson believes that its new betting shop will not be challenged by authorities, saying that the current pressure on the government by the European Commission to change its gambling policy “provide support for this endeavor”. Bettson said that it would expand the operation to other European locations if the Stockholm shop did well.

One Third of Oregon Teens Enjoy Free Online Gambling

According to a survey that was commissioned by the Department of Human Services in Oregon, one third – 33 percent – of youths questioned admitted to playing free online gambling games on a regular basis. The survey defined teens as those between the ages of 12 and 17.

The results were met with surprise and disapproval by authorities who said that when the survey was commissioned ten years ago, free online gambling was not even an option. "It's the game of choice among youth, which is surprising for us," said Wendy Hausotter, problem gambling prevention coordinator with Oregon Department of Human Services. "It wasn't on the radar screen."

Hausotter was concerned with the numbers, saying: "You're learning that gambling is fun, it's stimulating, and it's risk-free. That’s not true at all.”

Experts agree that teens are drawn to free online gambling because it is a form of entertainment that is easy to access, it does not require that they leave their homes and they were able to play without parental supervision.

William Hill Bingo Ad Banned for “Socially Irresponsible” Message

William Hill gambling company had a bingo ad banned by the Advertising Standards Authority in the United Kingdom this week after it was found to convey a message that was “socially irresponsible”. The ad depicts a woman rushing upstairs as soon as her husband leaves for work, after she tricks him by moving the clock forward by a few minutes. She then settles down to enjoying her session at the William Hill bingo hall, exclaiming “I get mine the minute he has left.” When she fixes the time again, she says “Doesn’t time fly!”

Despite the fact that William Hill stood by its opinion that the ad was humorous in nature and did no harm, the ASA nonetheless pulled it from the media for implying that the woman was desperate to play bingo, needing her husband to exit as quickly as possible. The ASA said that the ad condoned gambling behavior that could lead to social, financial or emotional harm.