Online lottery companies such as Lottoland will be banned in WA under measures by the State Government aimed at protecting State-owned agency Lotterywest.

Premier Mark McGowan will this morning announce that so-called synthetic lottery services will be outlawed in WA, with offences introduced for people who offer or use them.

Gibraltar-domiciled Lottoland and other operators have been in the crosshairs of governments across Australia for undercutting traditional lottery companies which provide taxes and community grants and grassroots sports funding.

Other betting operators including Bet365, Ladbrokes and Sportsbet will also be captured by the changes. Unlike conventional lotteries, synthetic services involve punters betting on the outcomes of overseas draws rather than buying a ticket, and receiving a payout if successful.

This month, Lotterywest used its annual report to warn that online competition was putting pressure on its business and ability to deliver community benefits.

Mr McGowan said that betting on the outcome of a lottery would be a prohibited activity under two separate Acts.

On top of this, industry regulator the Gaming and Wagering Commission would be given new powers to police the market and ensure companies were not trying to get around the laws.

People caught betting on the outcome of a lottery will be hit with a $2500 fine under the new regime, while those offering the service face a penalty of $5000 and one year in jail.

There will also be a ban on wagering companies not licensed in WA establishing physical outlets in public places such as shopping centres to remotely link their operations.

“Online lottery betting organisations, like Lottoland, provide no return to the Western Australian community, which is why we made a firm commitment to ban them in WA,” Mr McGowan said.

“The new laws will protect Lotterywest and enable it to continue to provide its outstanding contribution to the community through its grants program.

“The laws are all about protecting Lotterywest and reducing harm to at-risk and problem gamblers in our community.”