Warning issued over Lotto Spring scheme

Australians are being urged to stay away from a dodgy online betting site where subscribers put money on the outcome of other lotteries around the world.

Lotto Spring claims to be "taking Australia by storm" in its online advertising campaign but the consumer watchdog is warning people to avoid the unlicensed betting scheme.

A woman has contacted WA ScamNet to say unauthorised deductions were made from her bank account after she signed up and that she struggled to resolve the problem because the website's operator, which was set up in November, is based overseas in the British Virgin Islands, and Curacao in the Caribbean.

Lotto Spring is being promoted online, including on a Facebook page targeting Australians, and it was advertised in The West Australian newspaper as a "social lotto game and global opportunity" with seven ways to win.

Under the scheme, subscribers bet on the outcomes of other lotteries, such as the EuroMillions draw, rather than entering an actual lottery.

Acting Commissioner for Consumer Protection WA David Hillyard says Lotto Spring does not have the required Australian licence for that type of gambling.

"You aren't offered the same protection or guarantees of payouts as you are when playing with lawful Australian lotteries and there may be issues in relation to taxation as payouts will be coming from overseas," he said.

Participants also pocket a reduction or refund of their monthly entry fees or free tickets in exchange for referrals, and are promised a share in winnings of a referred person if they can recruit four or more people.