WLA Working definitions

Note: The following working definitions are used by the WLA Executive Committee and the WLA Illegal Lotteries and Betting Committee. Given that lottery and betting regulations vary in different countries around the world, there is no generalized indication possible on whether a service is legal or illegal. This must be assessed individually for each jurisdiction. Due to the ongoing digitalization in the gambling sector and the associated development of new (online) business models, the definitions (incl. characteristics) must be regularly reviewed and, if necessary, adapted or extended.

Legal / Illegal Gambling Operator (WLA Definition)

• Legal Gambling Operator: A company acting with proper authorization (e.g. by law, license, etc.)  in all or any of the jurisdictions, where its products/services are offered.
• Illegal Gambling Operator: A company acting without proper authorization in all or any of the jurisdictions, where it offers its products/services, even if it is acting with the proper authorization in one or some jurisdictions.

Lottery Reseller (Can be active in one or more of the segments)

• Original stationery retailer: Point of sales integrated in the distribution organization of the lottery operator.
  
  Characteristics:
  ‍
• - (In)dependent reseller of licensed/authorized lottery/betting products with own permission
• - Earn commission for each lottery/betting product sold (percentage depends on jurisdiction’s regulation or rule)
  
  Alternative term: POS
  ‍

• Lottery Courier Services Operator: A provider offering a service to players consisting of purchasing physical tickets from a lottery operator in exchange for monetary compensation.
  
  Characteristics:
  
  
• - On behalf of the customer
• - Brokerage agreement between customer and courier service operator
• - Gaming contract between customer and official lottery operator; winnings are paid by the lottery operator
• - Courier service operator and customer are usually, at least at the purchase, anonymous to the lottery operator
• - Can offer further and/or own products
• - May earn commission for each lottery product sold (percentage depends on jurisdiction’s regulation/rules)
  
  Alternative terms: Ticket Reseller, Lottery Messenger Service

• Commercial Gaming Broker: The provider brokers lotteries and other lottery products between its own customers and the lottery operators via the Internet and receives brokerage commissions from the lottery operator.
  
  Characteristics:
  ‍
• - Mostly active online
• - On behalf of the customer
• - Brokerage agreement between customer and commercial gaming broker
• - Gaming contract between customer and official lottery operator; winnings are paid by the lottery operator to the broker, who forwards it to its customers¹)
• - Service agreement between commercial gaming broker and official lottery operator
• - Commercial gaming brokers are usually known to the lottery operator; customers are usually not known to the lottery operator
• - May earn commission for each lottery product sold (percentage depends on jurisdiction’s regulation)
• - Can offer further and/or own products/services
  
  Alternative terms: Gaming Broker, commercial (lottery) agents

Betting on Lotteries Operator

• Betting on Lotteries Operator: Lottery betting is a form of betting on a non-sporting event, where players place bets on the outcome of original lottery draws instead of buying physical or online tickets via official lottery operators, and therefore do not participate in the original draw game.
  
  Characteristics:
  ‍
• - Mostly active online
• - On behalf of the customer
• - Betting contract between betting operator and customer
• - No contractional relationship with official lottery operator
  
  Alternative terms: Synthetic lotteries, secondary lotteries, black lotteries