Online Lotto: predator or benign service?

Monte Carlo Milk Bar owner Mike Casey with some chances to win big money.  Photo by Peter McIntosh.
Monte Carlo Milk Bar owner Mike Casey with some chances to win big money. Photo by Peter McIntosh.
It is Saturday, just past 7pm. The kids are in bed, or out, or ignoring you.

The fish and chips have been consumed, and it is time to relax.

But then you remember, your Saturday night chance to leave the kids behind has been forgotten - you have not bought a Lotto ticket.

So you come into the category of "forgetfuls'' - a term used by the New Zealand Lotteries Commission for those who forget to buy their tickets during the week.

So what better way to help the "forgetfuls'' than be able to buy tickets from the comfort of your home.

Commission spokeswoman Karen Jones said buying online had been used overseas for many years, and New Zealand was simply just "catching up''.

The process would be similar to the Trademe site, or TAB accounts.

People would log on, and register an online account, where identification would have to be provided.

That could be done either through a credit card or two forms of identification. They would have to provide details of a bank account. Once approved, Lotto players would then be able to pick their numbers through an easy-to-use screen system, and then, hopefully, sit back and dream of holiday homes and weeks on the beach.

She said online Lotto buyers would only be able to spend a maximum of $300 a month, and $69 a week.

"Very few people would spend that a week on Lotto through a retail outlet. "There may be people who are buying tickets for syndicates who spend near that amount, but very few would.''

The push to get the sales online was driven by consumer demand.

"We get emails every month from our customers asking about online. We are just reacting to public demand.''

Lotto was like any other business, and had to grow.

The vast majority of tickets would still be sold through Lotto's 1000 retail outlets, she said. Initial expectations were 3%-4% of tickets would be bought online, similar to overseas' experience.

"We have gone through a very extensive consultation process on this. But we don't consider Lotto as an addictive gambling product. It is not rapid play, with a rapid reinvestment. With a Lotto ticket you have to wait for Wednesday or Saturday for your chance".

"There are probably a handful of people out there who do have issues. It is nothing compared to the thousands of pokies we have in this country.''

Online tickets would be for Lotto, Keno, Big Wednesday, Lotto Strike and Lotto Powerball. She would not comment on any further plans to have online betting for other products such as Instant Kiwi.

Only New Zealanders could carry out online Lotto betting, and it could be done from overseas.

In the 2006-2007 year, Lotto sales totalled $744.8 million, with $147.5 million being given to the New Zealand Lottery Grants Board to distribute to charity.

Lotto had enjoyed a bumpy ride since it started in July, 1987.

Interest had dropped in the late 1990s, but picked up through the introduction of new games, such as Big Wednesday and Powerball. The economy improved and growth had returned, albeit slowly.

There were no plans to take the technology further, such as picking Lotto numbers via cellphones or home television.

Overseas, interest in buying national lottery tickets online has not been overly dramatic. The United Kingdom national lottery, Camelot, sold about 7% of its tickets online, with Australian lotteries also enjoying the same level of support.

Problem Gambling Foundation chief executive officer John Stansfield said there were many concerns about being able to buy Lotto online.

"It's not about buying Lotto tickets online. It's about what is further down the line. They will be looking at bringing in more exciting products, which don't have the same safety levels, and are more dangerous,'' Mr Stansfield said.

He wondered where it would lead.

"In Victoria now there is a show you can gamble through your television - so you can lose your house while sitting on the couch.''

He said there was just a lack of control on people going online to gamble.

"If you went down to the dairy to buy $100 worth of Lotto tickets, at least the owner may ask what about paying your milk bill first.

"But here the whole process has been desocialised.

"The biggest gamblers in New Zealand are beneficiaries, then followed by the low waged. Lotto is a form of regressive taxation".

"Do we really need this as another option?''

Mr Stansfield said Lotto spent about $26 million annually on advertising, so it could hardly be described as not actively pushing the product.

The TAB is not worried about the move to online Lotto buying.

TAB spokeswoman Susan Owens said racing and the on-course experience was different from Lotto.

Everyone opening a TAB account must provide date of birth and identification, to prove they were over 18. Photo identification must be provided in person when opening the account.

There was no age limit on buying Lotto products in a retail outlet, and that would continue online.

The Monte Carlo Milk Bar, in Mosgiel, is typical of the 1000 Lotto outlets across the country.

Owner Mike Casey said he hoped the move to online buying of Lotto tickets would not harm his business, and was taking a wait-and-see attitude.

"It could be some threat. I don't really believe in people forgetting and then rushing on to the computer on Saturday night. Those sort of people will just flag it.''

He said 85% of all tickets were sold on Saturday at his store.

Stores earned a 7% commission on every ticket sold, which Mr Casey said was above average.

"It gets people in the door, which has to be good for the store. They might go and buy something while they wait".

"But every ticket bought online is a ticket not bought from us. After all, we are the whole network which sells the tickets.''

The store paid a substantial agency fee at the start of Lotto, to get the game established, he said.

Green Island Milk Bar and Lotto Shop owner Connie Zhou said the move to online was probably an attempt to meet the needs of younger people.

Many of them preferred using computers to shopping, so it was a good move to expand the Lotto customers.

She said most people would still prefer to go into a shop, and buy their tickets in person.

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