An online advertisement for a US lottery has been banned after a complainant noticed that rather than offering participation tickets, it allowed customers to bet on its outcome. The misleading ad has even made sensational headlines in some UK media publications where readers were told they could win the whopping £256 million super jackpot.
The ad was distributed by LottoGo, a website for betting on lotteries, which is operated by Annexio Ltd, a company based in the Isle of Man. Gamblers were told they could wake up multi-millionaires by participating in one of the advertised lotteries on the site. In this case, the Advertising Standards Authority says, LotteryGo promised entry to the US Mega Millions lottery in July. What it failed to inform customers about, however, was that they were actually betting on its outcome and not playing for the jackpot.
There was a complaint filed against the website and its ad, which prompted the Advertising Standards Authority (ASA), the advertising regulator in the UK, to take actions and place a ban. The individual filing the complaint said that the ad was misleading because it did not state that the potential winnings were subject to US taxes.
Annexio, which owns the LottoGo brand, responded that advertising the potential winnings before taxes was an industry practice. It could not know, the company says, what taxes customers were required to pay as each individual lives in a different jurisdiction and has a different tax status. The ad stated, according to the site, that any potential winnings amounts were subject to various tax deductions.
US Lottery Available to UK Residents?
UK gamblers who visit the lottery-betting website LottoGo would probably think they can purchase tickets for the millions-worth US lotteries directly online. Indeed, the site seems to be offering just that although Annexio claims that it made it clear to consumers that they were betting on the outcome of the lotteries and not taking part of them. What is most advertised on the website, however, is the jackpot amount of each different lottery, Mega Millions, Power Ball, and EuroMillions among others.
This caused several UK media outlets to report that the popular US lotteries had finally come in the United Kingdom and gamblers here could be getting their hands on the huge jackpots. With their actions, they also misled consumers, even though it was probably without intent. The ASA told the lottery-betting website, known until recently as World Lottery Club, that it needs to clarify that customers are not buying into the lottery but instead simply betting on its outcome.
On its website, Annexio also states that it does not operate any lotteries and that members only bet on the outcome of different national lotteries. However, UK residents can participate in the US lotteries as they are available to anyone. The only requirement for participation is that customers purchase an official lottery ticket from a licensed reseller. This is a perfectly legal way to enter the lottery from abroad and play for the jackpot.
- Author
Daniel Williams
