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Australia delays online keno ban after KenoGo wins Supreme Court injunction

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Supreme Court injunction pauses ban implementation

Australia has delayed the implementation of its online keno ban following a Supreme Court injunction granted to KenoGo. The ruling, handed down by Justice David Hammerschlag on 22 October, allows three online keno operators to continue their activities past the official 1 January implementation date.

The delay was requested in an unopposed motion and remains in effect until KenoGo’s constitutional challenge concludes. The ban targets online keno specifically, leaving land-based keno operations unaffected. The three operators currently operating under this interim arrangement are Lottoland, The Lottery Corporation, and Annexio Australia.

Constitutional challenge centers on interstate trade

KenoGo is challenging the law on the grounds that it violates Section 92 of the Australian Constitution, which protects interstate commerce. KenoGo’s lawyers argued that the legislation effectively makes inter-State trade in keno games unlawful. According to the operators, the law makes it an offence to supply keno-type lotteries online even when licenced under State law, while leaving intra-State trade in the same games lawful if supplied in a venue.

The company contends that the ban is akin to protectionism and that the real reason for the law is to commercially protect pubs and clubs. KenoGo argues that the fast-paced nature of the game causes harm across both online and land-based versions. As a result, the company suggests alternative measures such as banning quick-version keno in land-based venues, implementing spending limits, and expanding self-exclusion options.

Government defends public health rationale

The Australian government maintains that land-based and online keno are different products. Authorities argue that cross-border keno is rare and state that the overall purpose of the law is to protect people, not pubs. The government noted that the fast-paced digital version of keno faces accusations of causing outsized harms compared to ordinary lottery-style products.

During the proceedings, the government ruled that documents held by political advisors to the prime minister and the communication minister were not relevant to the specific case. Officials stated that ordering discovery of these documents would only delay proceedings.

Financial impact on operators

The anticipated ban has already had a significant financial impact on operators. The Lottery Corporation recognized a substantial financial impact in its FY2026 financial corporation. Specifically, the company recorded an A$57m (€35.1m) impairment of its ACT keno licence. The three online keno operators, including Lottoland, The Lottery Corporation, and Annexio Australia, have built profitable businesses that are now subject to this interim legal status.

KenoGo faced a procedural setback on 5 November when it failed in its bid to obtain the aforementioned documents. Despite this, the Supreme Court injunction remains in place, preserving the status quo for online keno providers while the constitutional argument continues in the courts.

Why It Matters

The delay keeps three major online keno operators active in the Australian market while their constitutional challenge proceeds. This interim status creates financial uncertainty for companies that have already recorded significant licence impairments, such as The Lottery Corporation's A$57m write-down. The outcome of the Section 92 challenge could reshape how Australian regulators approach digital lottery products and interstate commerce restrictions.

FAQ

Who are the operators affected by the Australian online keno ban delay?

The three operators allowed to continue past the 1 January deadline are Lottoland, The Lottery Corporation, and Annexio Australia. They are currently operating under the interim arrangement established by the Supreme Court injunction granted to KenoGo.

What is the legal basis for KenoGo's challenge to the ban?

KenoGo is challenging the law based on Section 92 of the Australian Constitution, which protects interstate commerce. The company argues the ban unlawfully restricts inter-State trade in keno games while allowing intra-State venue-based trade, characterizing the legislation as protectionist.

How long will the online keno ban be delayed?

The delay lasts until KenoGo’s constitutional challenge concludes. There is no specific end date for the injunction; it remains in effect as long as the legal proceedings continue in the Supreme Court.

Did the ban affect land-based keno games?

No, the ban applies only to online keno. Land-based keno operations in venues such as pubs and clubs remain unaffected by the legislation and the subsequent court injunction.

David Harrison Senior Gambling Analyst · All articles

David combines years of real-world casino experience with sharp analytical insight into betting psychology and strategy. His reviews and guides break down complex gambling concepts into clear, actionable advice for newcomers and seasoned players alike.