Last night, the Federal Government passed draft laws which will make “lotto betting” or “synthetic lotteries” prohibited in Australia by early 2019.

Gibraltar-based Lottoland offers the service — which allows punters to bet on the outcome of a lottery instead of buying a ticket for an official lottery draw — and the new laws could spell big trouble for the company.

The government and Labor united against synthetic lotteries after concerns they entice people away from traditional lotteries and the revenue they generate for newsagents, pubs and clubs.

But not all newsagents were against Lottoland, with some groups arguing the company’s demise will stop increased competition in lotteries, hurting small businesses.

Lottoland chief executive Luke Brill denied the changes signalled the end. Mr Brill said they wouldn’t come into force until 2019 and the company was “well advanced” in exploring other ways to continue delivering choice to 700,000 registered Australian punters.

“We are here to stay,” he said in a statement on Thursday.

“We will continue to innovate and adapt so that we can continue to provide our customers with the type of exciting and innovative products they have come to expect from us over the past two years.”

Last month, Mr Brill said the company would consider a High Court challenge if the bill passed Parliament.

Communications Minister Mitch Fifield said the government was committed to ensuring gambling takes place with strong consumer protections and within the boundaries of community standards.

Adam Joy, CEO of the Australian Lottery and Newsagents Association (ALNA) said the upcoming ban was long overdue.

“ALNA has been very firm in our stance against lotto betting for a long time,” she said in a statement. That’s because it confuses Australian consumers, it damages newsagents’ businesses, and it is an irresponsible and harmful model.

The lotto betting model encourages highly repetitive bets that may risk problem gambling, promote higher risk spending, and may be misleading regarding the winnings available. This increases risk and it comes at a significant cost to state taxes, and to local family-run small businesses — that employ locally, pay Australian taxes and support the local community.

“Lotteries don’t operate in a free market — most gambling products haven’t existed in a free market for decades. Arguing about monopolies is very convenient for online bookmakers who don’t want to have to follow the usual rules, but gambling products aren’t like other products, which is why governments regulate their access to consumers.

“Lotto betting bookmakers currently operate only because of a loophole that exists in current regulations.”

Lottoland has vowed to honour its three-year sponsorship deal with NRL club Manly even if the legislation passed.