Lotto NZ helpless as offshore operator clones Powerball game
New Zealand authorities are aware of a Malta-based gambling firm offering a copy of its national lottery C but say they are powerless to stop it.
TheLotter, a major online lottery operator headquartered in Malta, runs a game called NZPowerLuck, which replicates Lotto NZs Powerball in both gameplay and draw structure. A spokesperson for TheLotter confirmed that NZPowerLuck receives consistent interest from customers globally, especially during large jackpot periods.
Despite Lotto NZs awareness of the situation, there has been no concrete action against the offshore operator. Will Hine, head of corporate communications at Lotto NZ, said the organisation had raised the issue with the Department of Internal Affairs. Were aware of TheLotter, Hine said, adding that its one of several syndicates running similar operations.
TheLotters model includes both reselling physical lottery tickets bought in official jurisdictions and offering lookalike versions of national or regional lottery games. Moreover, TheLotter actively promotes this operation. Their website states: The distance between Russia and New Zealand is about 10,000 kilometres. So how did one of TheLotters longtime players from Russia win an impressive prize of NZ$ 226,101 by playing New Zealand Powerball? Simply by playing it from anywhere in the world!
Lotto NZs terms and conditions clearly forbid the sale of tickets to players located outside New Zealand. Tickets resold internationally or through third parties are deemed ineligible for prizes. However, operators like TheLotter circumvent these rules by offering derivative products, rather than actual tickets.
Platforms blocked, yet accessible
The platform is geoblocked in New Zealand, meaning residents using local IP addresses cannot access it. However, this geoblock has a minimal impact on the platforms international presence.
This legal grey zone has made enforcement difficult. Since TheLotter operates entirely from Malta, New Zealands laws hold no jurisdiction unless bolstered by international cooperation, which has not been forthcoming.
Malta, meanwhile, has little incentive to intervene. The online gambling sector contributes roughly 16 percent to the island nations GDP and employs over 24,000 people from a total population of just over 550,000. Its regulatory framework enables operators like TheLotter to legally provide services across borders, so long as they comply with local laws.
TheLotter claims to offer access to over 45 global lotteries and a growing list of derivative games based on popular national draws. NZPowerLuck remains one of its most popular offerings during high jackpot periods, according to the company.
Efforts intensify to minimise impact
While Lotto NZ has taken some action including blocking one global syndicate from purchasing official Powerball tickets and revamping the chances of winning cloned games, such as NZPowerLuck, do not rely on purchasing real tickets and therefore fall outside the immediate scope of detection or enforcement.
Until global frameworks evolve to tackle these borderless platforms, countries like New Zealand may have to accept that offshore operators will continue offering imitations of their national lotteries with little recourse to stop them.
