Australia Legislates Ban on Foreign-Matched Lotteries and Online Keno Effective January 1 2027
Australia will ban foreign-matched lotteries (including US Powerball and EuroMillions) and online keno from January 1, 2027 under the Interactive Gambling Amendment (Gambling Reform) Act 2026. The Lottery Corporation supports the move but forecasts AU$25 million EBITDA hit; The Lottery Office challenges its harm-reduction value. Four Northern Territory licensees are directly affected.
SCCG Take — The reform prioritizes licensed operators with strict obligations over offshore-linked products, yet the projected revenue loss and unproven harm reduction require close post-2027 monitoring by both operators and regulators.
Australia will prohibit foreign-matched lottery services and online keno from January 1, 2027. The prohibitions follow passage of the Interactive Gambling Amendment (Gambling Reform) Act 2026. They form part of wider changes to the gambling framework that include tighter advertising controls and further development of BetStop, the national self-exclusion scheme.
Foreign-matched lotteries let Australian customers enter overseas draws, including US Powerball and EuroMillions. Four businesses currently offer these services under licences issued in the Northern Territory. One of those providers, The Lottery Office, has challenged the change. It questions whether the removal will reduce gambling harm or deliver meaningful consumer protection. The Lottery Office will continue operations until the restrictions take effect.
Lottery Sector Divided Over the Ban
The Lottery Corporation, Australia’s largest lottery operator, welcomed the legislation. Chief executive Wayne Pickup stated that licensed operators carry obligations intended to protect customers and preserve confidence in the lottery market.
“Australia’s lottery market is regulated by design to protect consumers, to safeguard integrity and to return money to the community. A licensed lottery operator carries real obligations: responsible gaming, security, auditing, probity, guaranteed prize funding and public returns. That is the price of a license, and it is why people trust a lottery ticket.”
The legislation will remove online keno while leaving keno offered through licensed physical venues untouched. This carve-out allows pubs and clubs to continue providing the product.
Operational Realignment and Regulatory Trade-offs
The change carries direct financial consequences for The Lottery Corporation. Pickup estimated that ending its online keno operation would reduce annual EBITDA by about AU$25 million, or US$18 million, based on FY26 results.
“The full year impact of discontinuing online Keno for us would be circa AU$25 million (US$18 million) of EBITDA based on FY26.”
The company plans to increase its focus on venue-based keno. Pickup cited longstanding relationships with venues and the firm’s established presence across Australia’s eastern seaboard pub and club ecosystem.
“Our response is to double down on Keno in licensed venues. We have longstanding relationships with venues and we’re well and truly embedded in the eastern seaboard pub and club ecosystem.”
These 2027 restrictions sit inside a broader reform programme. As reported by Casino News Daily, the measures bring both foreign-matched lotteries and online keno under the new rules. The counterargument from The Lottery Office highlights a limitation in the reform logic: it remains unproven whether ending these products will materially cut harm or simply shift activity. Operators facing the transition must therefore weigh compliance costs against retained venue-based revenue streams while regulators track actual harm-reduction outcomes after implementation.
Reporting: Casino News Daily
Generated by SCCG’s automated editorial system from published source reporting. SCCG Management holds editorial responsibility.
Canberra is ring-fencing the lottery market for domestic licensees, but the AU$25 million revenue hit shows protectionism has a price tag.
We've watched Australia tighten its gambling perimeter for years—this is the next turn of the screw. Foreign-matched products and online keno are out; licensed, obligation-heavy operators are in. It's a clear signal: if you want access, you play by Canberra's rules—or you don't play at all. For our partners eyeing APAC, this is the new compliance floor.
- Foreign lotteries (US Powerball, EuroMillions) and online keno banned effective January 1, 2027
- Four Northern Territory licensees lose product lines; The Lottery Corporation forecasts AU$25M EBITDA hit
- Venue-based keno survives—online does not; licensed operators with compliance obligations gain market share
SCCG angle: SCCG works both sides of this equation. For offshore operators, we navigate alternative licensing pathways and compliant product pivots across Asia-Pacific. For domestic Australian licensees gaining share, we connect you to content, platform, and payment partners who meet the heightened compliance bar—no guesswork, no missteps.
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