The Lottery Corporation, Australia’s dominant provider of licensed lottery products, has voiced its support for the Albanese government’s gambling reform bill, backing measures that would force foreign-matched lottery services and certain rewards-club promotions out of the market.
Wayne Pickup, the company’s managing director and CEO, was giving evidence to the Senate Environment and Communications Legislation Committee, which is considering the Interactive Gambling Amendment (Gambling Reform) Bill 2026.
The bill includes sweeping restrictions on wagering advertising, but also proposes banning online “foreign matched” lotteries and Keno-style products, as well as tightening an exemption that has allowed some subscription businesses to run lottery-like promotions.
A foreign lottery—like The Lottery Office, which is licensed out of the Northern Territory due to more relaxed laws—allows local residents to take part in overseas lotteries like the U.S. Powerball, U.S. Mega Lotto, the Italian Super Jackpot, and the European Millions.
Instead of selling tickets directly, the local operator runs a matching draw and buys the equivalent ticket from the overseas lotto.
They also pledge to pay out the same prize value in Australian dollars.
“Here is what they [Australian customers] are not told,” Pickup said. “They are not told which U.S. state the ticket was bought in. They are not told who holds the ticket. Keep in mind, the Australian is not the owner of the ticket, and that matters greatly.”
The CEO also highlighted the risks associated with prize payouts when Australian customers win foreign lotteries.
“The advertised jackpot in the United States is a 30-year annuity. U.S. federal and state taxes come out before the money is collected, and every state taxes differently, which rules apply depends on where the ticket was bought, and the customer is never told,” he said.
“And the terms are explicit: there is no obligation to pay the Australian customer. No Australian has ever collected a first division jackpot with this model—that is when the model will be truly tested.”
While expressing his company’s support for the bill, Pickup said its concern was “not one of competition,” noting the reforms would also ban one of the Lottery Corporation’s own products—online Keno.
“Our concern is consistency. Consistency means that a product sold to Australians as a lottery should carry the obligations of a lottery. Australia’s lottery market is regulated by design to protect consumers, to safeguard integrity, and to return money to the community,” he said.
“A licenced lottery operator carries real obligations: responsible gaming, security, auditing, probity, guaranteed prize funding, and public returns. That is the price of a licence, and it is why people trust a lottery ticket.”
The Lottery Corporation operates, under licences issued by state and territory governments, a range of brands including Keno, Powerball, Oz Lotto, TattsLotto, Gold Lotto, X Lotto, Weekday Windfall, Instant Scratch-Its, Set for Life and Lucky Lotteries.
The Lottery Corporation levelled a similar complaint at rewards-club trade promotions, which it said could resemble public lottery products.
Rewards clubs are popping up all over Australia and the model involves giving customers “free” entry into draws for a range of prizes—houses, cars, and cash—for a monthly subscription fee.
Pickup said there were legitimate questions on whether the usual legal protections applied.
The Committee is due to report on Aug. 17, with several members signalling they believe the bill does not go far enough. If passed, the reforms are scheduled to take effect from Jan. 1, 2027.
