Misleading LottoGo ad banned by ASA
Lottery betting operator failed to make clear that players were betting on overseas lotteries instead of entering a draw
The Advertising Standards Authority (ASA) has banned an advert by lottery betting operator LottoGo.com for failing to make clear that players are betting on overseas lotteries.
LottoGo.com, formerly known as World Lottery Club and owned by Annexio, appeared to advertise entry to the US Mega Millions lottery in July, stating: “Mega Millions has an opening jackpot of $15 million with no cap. It makes the world’s biggest lottery winners!”
£53m to be won in tonight's Powerball… are you on a winning streak this week? https://t.co/mEU2Mg7cB1 pic.twitter.com/qJPglM0Dgi
— LottoGo.com (@LottoGoCom) July 4, 2018
A complainant said the ad was misleading because the prize was liable to be significantly reduced thanks to tax rules, while the ASA said it did not make it clear that LottoGo was offering the opportunity to bet on the outcome of the lottery rather than participate in it.
LottoGo argued that it was industry practice to advertise prize amounts pre-tax and that it was not possible for them to know the tax status of their players in different locations, insisting the language used in adverts and on their website followed Gambling Commission guidelines.
The ASA concluded the ad was misleading and ruled it did not make clear that jackpot amounts might be subject to significant deductions which could reduce them by almost half.
The regulator also concluded that consumers were unlikely to understand they were being offered the opportunity to bet on the outcome of a lottery, rather than participate in the lottery.
The LottoGo ad was banned in its current form as a result.