Lottoland Challenges Australian Online Keno Ban in Constitutional Court

A major legal storm is brewing in the Australian gambling landscape. Lottoland, the Gibraltar-based lottery giant, is not accepting the planned ban on its online keno products without a fight. The company's Australian subsidiary, which was rebranded to KenoGo last year, has filed proceedings in the New South Wales Supreme Court’s Equity Division. The goal is to challenge the validity of a federal ban set to take effect on January 1, 2027. This move follows legislation passed in August that classified digital keno offerings as potentially harmful.

The core of the legal dispute rests on whether the Australian government has the right to prohibit digital services while allowing land-based keno games in casinos and clubs to continue. Lottoland views this as unconstitutional discrimination and is invoking Section 92 of the Australian Constitution. This provision safeguards the freedom of trade and commerce between states. Much is at stake for the company, which was already forced to pivot in 2019 after its original core business – betting on international lottery outcomes – was banned in Australia.

Numbers and facts

The case was officially added to court lists on October 22, 2026. The challenge specifically targets Section 8D(2)(b) of the Interactive Gambling Act 2001. Lottoland argues that this specific passage, which bans keno lottery games not connected to a physical venue, is invalid. Notably, other prohibitions, such as those on electronic scratchies or foreign matched lotteries, remain unchallenged in this particular lawsuit.

Lottoland is not alone in the market. Besides KenoGo, The Lottery Corporation via its KenoOnline brand and Annexio Australia through LottoGo offer similar products. The plaintiffs point out that they hold a 20-year keno license issued by Victoria's gaming regulator, which was originally intended to run until 2042. Furthermore, KenoGo had already voluntarily connected to Australia's national self-exclusion scheme, BetStop, to address concerns regarding player protection.

Background

The Australian government justifies its ban based on a comprehensive report titled "You win some, you lose more," published in June 2023. This document outlined 31 recommendations for reforming the gambling market. Critics argue that high-frequency online draws possess a significantly higher addiction potential compared to traditional lotteries. While industry stakeholders emphasize that strict harm minimization rules are already in place, the government views the speed of digital games as a threat to consumer safety. Luke Brill, CEO of Lottoland Australia, warns of a monopoly favoring established players like the Tabcorp group.

"As this matter is currently the subject of ongoing legal proceedings, we have taken the position not to make any public comments at this stage." - Lottoland Spokesperson

There have been fierce debates regarding Lottoland's role in the past. The company submitted documents from the Australian Securities and Investments Commission (ASIC) to demonstrate that the Australian Lottery and Newsagents Association (ALNA) represents far fewer members than claimed. According to these documents, ALNA has only 707 paid members, rather than the 4,000 often cited.

Why it matters for German players

This case is of great interest to German players because Lottoland's legal status has been a topic of discussion in Germany for years. In Germany, the Interstate Treaty on Gambling 2021 (GlüStV 2021) applies. It clearly states that only providers with a permit from the Joint Gambling Authority of the Federal States (GGL) may operate legally. Lottoland is not on the so-called whitelist in Germany. This means that participating in lottery betting with this provider is illegal from a German perspective. Players in Germany who want to play safely must stick to portals carrying the GGL seal. Strict rules apply there: deposit limits of a maximum of 1,000 euros per month via the LUGAS system, a stake limit of 1 euro per spin for slots, and connection to the OASIS national ban file. The Australian case shows that the noose is tightening globally for providers without local cooperation in the land-based sector.

What it means for GGL-licensed casinos

Licensed operators in Germany can see the Australian dispute as a confirmation of the local path toward channeling. While the battle in Australia is now being fought in court, the German market offers legal certainty through the GGL whitelist. Casinos with a German license must clear high hurdles regarding player protection and taxes, but they are protected from sudden total bans like the one seen in Australia as long as they adhere to the rules of GlüStV 2021. The trend is clearly moving away from offshore providers toward strictly regulated local markets. For GGL casinos, this means that transparency and compliance with LUGAS requirements are the only long-term survival strategy.