Lottoland Australia is offering a profit-sharing deal to 4000 newsagents across the nation in return for in-store promotion of the online betting giant.
It's touting commissions of 20 per cent of the profits generated from bets by punters who nominate their local newsagent when they register with Lottoland.
"Lottoland does not offer bets on Australian lotteries but only on overseas lotteries, which means we do not compete directly with newsagents," CEO Luke Brill said on Thursday.
The offer, which is being made on an opt-in basis, comes after talks last year with the newsagency industry.
It's being touted as an improvement on the initial idea to share Lottoland revenue from secondary lottery betting.
In return, newsagents will be asked to advertise Lottoland in-store with promotional materials, such as posters and flags, for betting on international lotteries.
"We are proposing a model that puts cash back into small businesses," Mr Brill said in an open letter to newsagency operators released on Thursday.
The federal government in March introduced legislation to ban so-called synthetic lotteries, in an effort to protect newsagents and state and territory revenues generated by the traditional form.
South Australia has already banned synthetic lotteries and the Northern Territory has banned betting on Australian lotteries, while Victoria, NSW, Tasmania and WA are considering introducing legislation.
Although nothing has eventuated, the NSW government is concerned punters believe they are taking part in a lottery when they were actually betting on the outcome of a draw.
Lottoland Australia is the local arm of the Gibraltar-based global group and has more than 650,000 registered customers in Australia.
