Crown Resorts’ digital arm, CrownBet, has announced it’s about to jump on the secondary lottery bandwagon, with the launch of a new product, CrownLotto.
The move will challenge Lottoland’s dominance of the disruptive online lottery model, which offers its players the opportunity to “bet” online on the outcome of lottery draws around the world and the chance to win the same value of that draw’s jackpot prize.
Lottoland has been called the “Uber” of the lottery industry because it poses a similarly disruptive threat to lotteries that the “click and ride” app has posed to taxi companies.
Since they don’t have the liquidity of traditional lotteries, which builds the staggering prize pools, secondary lotteries use insurance to safeguard against jackpot winners, or, more specifically, insurance linked securities.
This is the kind of insurance policy taken out by governments against unlikely but potentially terrible occurrences, like earthquakes or hurricanes.
And now, lottery winners.
Step Forward, CrownLotto
CrownLotto is also a reaction to William Hill’s Planet Lottery, which launched recently as part of Lottoloand’s own white-label offering. And of course, all three secondary lotteries will be competing against the semi-monopolized lottery king, Tatts.
“We’re launching these products to meet the clear and growing customer demand that is driven by huge jackpots in overseas draws,” a CrownBet spokesman said.” Lottery wagering attracts a different demographic and will grow overall interest in lotteries, rather than competing with traditional physical lotteries.”
CrownBet has said it will donate a portion of CrownLotto’s earnings to community causes in order to challenge claims that secondary lotteries cut into the revenues of traditional lotteries which funnel funds into good causes.
Opposition to Lottoland
This is one up on Lottoland, which currently does not make any such contributions. Lottoland launched in 2015 and claims to have paid out well over $10 million. It recently crowned its first secondary lottery millionaire.
But it has been opposed in several fronts. Tatts swiftly took legal action against the company, questioning its intellectual property rights, and Lottoland is believed to have settled out of court for six figures.
Meanwhile, Western Australia has already legislated to have secondary lotteries banned, while newsagents and other retailers across the country have petitioned the federal government to take similar action.
Lottoland chief-executive Luke Brill has countered that because Lottoland is classed as a betting company, as opposed to a lottery company, it is subject to stricter regulations, which means traditional lotteries have an advantage.