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Australian gambling watchdogs are planning to examine the multi-million dollar contract between the local gaming provider Tattsnet and Nigerian lottery

2005-03-21

Australia cooperation with alleged illegal lottery in Nigeria investigated

Australian gambling watchdogs are planning to examine the multi-million dollar contract between the local gaming provider Tattsnet and Nigerian lottery. Tattsnet is a private company half-owned by Tattersall's, the Australian leading gaming developer established in 1881, and Swedish company Essnet.

The Australian lottery supplier last year was awarded a 10-year contract to provide e-lottery services to the Nigerian operator National Sports Lottery, which received a 30-year licence issued by the President. According to The News.com.au, the agreement has stirred a lot of controversy since it was found to contravene the west African nation's constitution. However, a Tattersall's spokesman denied Lotto Nigeria was operating illegally.

Nigeria, the second richest country in Africa, has been recently revealed to have the most corruptible government among other African countries. National Sports Lottery, backed by the President and former military dictator Olusegun Obasanjo, is likely to circumvent the constitution; from this point of view Australian supplier violates the law as well.

Tattersall's spokesman Simon Doyle said Tattsnet would dismiss the deal if the lottery was unconstitutional. "The lottery operator, the party which was granted the licence by the federal Government of Nigeria, is utterly confident that the licence is valid," he said. "I'm aware that there are other points of view based on Nigerian constitutional law but as far as we're concerned, the lottery is legal."  Nigeria's biggest city-state, Lagos, has won a temporary court order to stop what it calls an "unconstitutional" lottery, resulting in heavy financial losses for the lotto operators. 

National Sports Lottery was a re-branded organization related to the lottery operator, which went broke in 2002, leaving both creditors and lottery winners without compensation. 

"It is illegal. This lottery has no place in Nigeria," Lagos State Commissioner for Communications and Strategy, Dele Alake, said. "It is clear and plain to anyone that this is illegal ... it is in plain English."

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