Annexio's LottoGo advert banned by ASA

The Advertising Standards Authority in the UK has ordered Annexio’s LottoGo secondary lottery subsidiary to take down advertising which it says is misleading.

The advert on which the complaint centres was for entry to the US Mega Millions lottery in July, stating “Mega Millions £256 Million”, and: “Mega Millions has an opening jackpot of $15 million with no cap. It makes the world’s biggest lottery winners!”

The advertisement was the subject of complaint that it did not make clear that punters were betting on the outcome of the draw rather than participating in it, or that prizes were subject to US taxes, the Advertising Standards Authority said.

Contesting the complaint, the lottery company said it was industry practice to advertise potential prize amounts pre-tax, and it was not possible for them to know the tax status of their players, who were resident in a range of jurisdictions.

The advert made clear that tax and other deductions may be made from the winnings, and that entrants were betting on the draw outcome rather than actual participation, LottoGo claimed.

It said the website explained to consumers that they were betting on the outcome of lotteries rather than entering them.

The ASA said terms on the website said the pay-out could be lower than stated if it were taken as a lump sum, and might be further reduced to copy how US taxes might reduce winnings from the actual lottery, but said this needed to be included prominently where prize fund amounts were quoted.

It also found the overall impression was that consumers were being offered the opportunity to play the Mega Millions lottery, among others, in the advert even though the site was offering consumers the opportunity to bet on the outcome via a gambling operator.

The Authority ruled: “Because consumers were unlikely to understand from the ad as a whole that they were being offered the opportunity to bet on the outcome of a lottery via a gambling operator, rather than participate in the lottery itself, we concluded that the ad was misleading. We told LottoGo.com to make clear, as soon as prize funds were quoted, the extent to which winnings may be subjected to deductions.

“Furthermore, they must make clear that consumers were not being offered the opportunity to participate in a lottery, but to bet on its outcome.”