Lottoland Challenges Australia’s Online Keno Ban in Court
Australia.- 5 November 2026 | www.zonadeazar.com Lottoland has launched a constitutional challenge against Australia’s upcoming online keno ban, following legislation passed by Parliament in August 2026 that is scheduled to take effect on 1 January 2027.
The proceedings were initiated by KenoGo, the Australian subsidiary of the Gibraltar-based lottery group, before the Supreme Court of New South Wales.
The company is challenging the validity of federal legislation prohibiting online keno products that are not connected to physical gambling venues.
KenoGo Takes Legal Action Against Federal Government
The proceedings appeared on court lists on 22 October 2026 in the Equity Division of the Supreme Court of New South Wales.
KenoGo is seeking a declaration that Section 8D(2)(b) of the Interactive Gambling Act 2001, as amended by the latest reforms, is invalid.
The provision restricts online keno products that are not associated with land-based venues.
The challenge does not extend to other restrictions involving electronic instant lotteries or products linked to foreign lottery draws.
Constitutional Freedom of Interstate Trade
KenoGo’s legal challenge centres on Section 92 of the Australian Constitution, which protects freedom of interstate trade and commerce.
The company is questioning whether the new restrictions are constitutionally valid when digital keno products are prohibited while certain land-based activities remain permitted.
Although the operator’s full legal arguments have not been publicly disclosed, the proceedings raise questions about the distinction between online and physical keno.
A relevant precedent dates back to 2008, when Betfair successfully challenged Western Australia’s restrictions on betting exchanges using arguments associated with the same constitutional provision.
Licence Remains Valid Until 2042
KenoGo operates under a keno licence issued by the gambling regulator in Victoria.
The 20-year licence runs from April 2022 to April 2042 and has enabled the company to offer its services across Australia.
Previously known as Lottoland Australia, the business adopted the KenoGo name in September 2025.
The company shifted its focus towards online keno after Australia prohibited its original lottery betting products in 2019.
The latest federal legislation now threatens the continuation of another significant part of its operations.
Online Keno Ban Takes Effect in January 2027
The prohibition forms part of Australia’s wider interactive gambling reforms, passed by Parliament on 19 August 2026.
The Government believes online keno differs from traditional lotteries because of its high-frequency draws and rapid betting cycles.
Authorities argue that these characteristics can increase the risk of gambling-related harm.
The reforms aim to restrict access to high-intensity digital gambling products while strengthening consumer protection.
However, certain keno products linked to physical venues will remain permitted under the applicable legal conditions.
Three Operators Currently Active
The prohibition affects a market currently served by three principal operators:
- KenoGo, part of the Lottoland group.
- KenoOnline, operated by The Lottery Corporation.
- LottoGo, operated by Annexio Australia.
These businesses provide digital keno services through different commercial arrangements.
The implementation of the new legislation will require operators to reassess their activities and compliance obligations.
KenoGo’s challenge could become significant for the wider sector, although any implications will depend on the court’s eventual decision.
Government Previously Considered Alternative Restrictions
In February 2026, the Australian Government published a review of online keno and foreign-matched lottery regulation.
The review identified concerns about betting frequency and consumer spending.
However, it did not recommend a complete ban on online keno.
Alternative measures considered included:
- Extending national self-exclusion arrangements.
- Applying existing credit card restrictions.
- Introducing stronger advertising controls.
- Improving regulatory supervision.
Despite these findings, the Government subsequently proceeded with legislation prohibiting online keno.
KenoGo Had Introduced Consumer Safeguards
Before the government review, KenoGo had voluntarily joined Australia’s national self-exclusion scheme, BetStop.
The company also operates under the regulatory requirements associated with its Victorian licence.
Industry representatives argue that such measures provide a framework for reducing gambling-related harm without prohibiting the activity.
Federal authorities, however, believe that the risk profile of online keno warrants stronger intervention.
Lottoland Declines to Comment on Proceedings
Asked about the legal action, Lottoland confirmed that it would not comment publicly while the proceedings remain active.
The company has not provided further details about the arguments it intends to present.
There has also been no court decision suspending the implementation of the prohibition.
The legislation therefore remains scheduled to take effect on 1 January 2027 unless a subsequent judicial or legislative development changes that position.
Industry Impact and Next Steps
KenoGo’s legal action introduces a significant dispute concerning federal gambling regulation and the commercial rights of businesses licensed by Australian state authorities.
The case also raises questions about the different treatment of online keno and products offered through physical venues.
With a licence running until 2042 and a federal prohibition scheduled for January 2027, Lottoland is seeking to protect the future of its online keno business through a constitutional challenge.
The outcome could influence other digital keno operators and the implementation of Australia’s broader interactive gambling reforms.
Edited by: @fonta
