Online lottery betting operator Lottoland’s Australian division is under threat from state governments looking to defend traditional lottery retailers.

On Monday, the Herald Sun reported that three Australian state governments – Victoria, Western Australian and Queensland – were considering imposing new regulatory curbs on Lottoland’s business model, in which players wager on the outcome of local and international lottery draws.

South Australia’s Independent Gambling Authority has already prohibited Lottoland from conducting business in the state, based on the regulator’s view that Lottoland is cannibalizing local lottery sales without remitting the same amount of revenue in taxes and contributions to social and community causes.

Victoria’s government is reportedly convinced that Lottoland’s operations will result in a A$90m reduction in the state’s share of lottery revenue over the next three years. However, the federal government reportedly remains as yet unconvinced on the immediate need to restrict Lottoland’s operations.