Online Lottery Regulations Around the World

Online Lottery Regulations Around the World

In the world of online gambling, lottery-style games are a major business. According to the GTech Corporation, which administers the largest lotteries in the United States and around the globe, these games account for 70% of all online lottery sales. But unlike real casinos, online lotteries face less scrutiny, and many are operated by private businesses, rather than by state or national governments. This has led to a proliferation of Web sites offering lottery-style games for free or for a premium.

While the number of online lotteries continues to rise, some countries have laws that limit their growth. In Canada, for example, lottery gaming is illegal except in the provinces of Quebec and Ontario where it is regulated by the government. But in 1967 Montreal Mayor Jean Drapeau, seeking to recover some of the money spent on the World’s Fair and a subway system, introduced what he called a “voluntary tax.” For a $2.00 “donation” players were eligible to play for a prize that included silver bars rather than cash and were required to answer four questions about Montreal during a drawing. The federal government’s Omnibus Bill, which was aimed at bringing up to date some obsolete laws, declared this lottery tax legal.

Other countries regulate online lotteries and have strict rules regarding who may operate them and how. New Zealand, for instance, has an independent Crown entity that controls its lotteries. Profits from the New Zealand Lottery are distributed through the Lottery Grants Board to a number of community organizations and charities.

For many poor people around the world, lotteries provide an alternative to begging. In Vietnam, for example, a single mother named Huong works 16-hour shifts selling lottery tickets to earn enough money to feed her baby. On good days she sells 250 tickets, earning a daily profit of about 11 US-Dollars. But her luck can turn bad very quickly.

In Laos, meanwhile, the office of prime minister Thongloun Sisoulith has issued a directive requiring state-owned enterprises to reduce drawing times for the legal state lottery to one per week and handle winnings more transparently. It also ordered that informal football lotteries and lottery chances purchased via short messaging services be closed down. The directive came after criticism of alleged corruption in the state-run lottery system, with drawing numbers often appearing on ticket purchases but then mysteriously disappearing during the actual drawing. This has fueled anger among many people who feel the government has lost control of the lottery. The companies that manage the national lottery are owned by individuals with connections to members of the country’s ruling elite, sources told RFA’s Lao service.

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