Offshore jackpots pose risk to Lottery Corp: Barrenjoey
Viewers watching a game of rugby or their favourite NRL team stand a good chance of seeing an advertisement promoting US Powerball.
The Lottery Office, a local online lottery operator which gives Australians access to international jackpots, is behind a major marketing push to promote offshore competitions.
More Australians are cashing in on US lotteries. If it continues, it poses a risk to The Lottery Corporation. Reuters/Mike Blake
It is not the only provider of access to offshore lotteries, but its aggressive marketing strategy is so significant that broker Barrenjoey believes it could become a real threat to the ASX’s The Lottery Corporation.
Gaming analyst Matt Ryan predicts domestic players such as Lottery Corp are going to suffer in the long-term as offshore providers grow.
“Larger jackpots usually drive more interest and the US Powerball / Mega Millions jackpots can exceed $US1billion ($1.5 billion), which compares to Australian lotteries which have never exceeded $160 million,” Mr Ryan said.
“Pricing of the overseas tickets reveals a significant gross margin. For US Powerball, we estimate a $US3 ticket is being sold in Australia for $7. Costs related to the runner, marketing, and general operating costs are incurred by the offshore lottery reseller.”
The Lottery Office was launched in late 2018 by its parent company, Global Players Network. It appears to be the biggest supplier of offshore lottery tickets locally. The group sells one of its government-authorised Australian lottery tickets and then purchases that ticket in the corresponding overseas draw.
There are eight lotteries, giving Australians access to prizemoney in competitions such as US Mega Millions, US Powerball, EuroMillions and the UK National
Read more on afr.com
