Lottoland has sold its shares in Jumbo Interactive just two months after acquiring them.
On Tuesday, July 4, Lottoland released a statement via the Australian stock exchange revealing it has “ceased to become a substantial holder” in the company.
Australia’s unique lottery site only acquired a minority stake in Australian online lottery firm, Jumbo Interactive in April.
Brisbane-based Jumbo Interactive operates Oz Lotteries, a re-seller of lottery tickets, under the agreement with the Tatts Group.
The sale has come only a few weeks after The Australian Competition Tribunal approved the Tabcorp and Tatts merger. The merger did not seem like it was going to get the green light back when Lottoland paid around $7.6 million for just over 3.1 million shares in Jumbo Interactive.
Lottoland launched its online site in 2016 allowing customers to bet on the outcome of lotteries all around the world. The business model has confused many players and has also irritated Australian news agencies.
The Australian Lottery and Newsagents Association (ALNA) then called on the Australian parliament to change the legislation to ban lottery sites which offer a business model such as the one Lottoland offers.
South Australia is one state which enforces this legislation and ALNA wants it adopted nationwide.
Still, Lottoland has not been put off and recently teamed up with William Hill to launch a lottery feature on the bookmaker site called Planet Lottery. It is the same product offered on the Lottoland site but William Hill punters can do it all under the one account – South Australians are still excluded from the product.
Media reports are also suggesting Lottoland could be signing a naming rights deal with the race that stops the nation. The Herald Sun reported in April that the Northern Territory licensed site is looking to team up with Melbourne Cup and take over from Emirates in terms of naming rights.
Further details on whether Lottoland will sponsor the biggest Australian race have not emerged since.