An advertisement for a foreign lottery website was banned because it did not make it clear that gamblers gamble on the outcome of the game instead of participating in it or that prices were subject to US taxes.
LottoGo.com, formerly World Lottery Club, advertised in July for access to the American Mega Millions lottery, with the mention "Mega Millions £ 256 million" and further: "Mega Millions has an opening match of $ 15 million without a cap. "The world's biggest lottery winners!"
One complainant said the ad was misleading because the listed rates were subject to US taxes and other deductions, while the Advertising Standards Authority (ASA) said it was not clear that LottoGo offered the opportunity to bet on the outcome of the lottery. instead of participating.
£ 53m to win in Powerball tonight … did you win this week? https://t.co/mEU2Mg7cB1 pic.twitter.com/qJPglM0Dgi
– LottoGo.com (@LottoGoCom) July 4, 2018
Annexio, acting as LottoGo, said it was the industry practice to advertise potential pre-tax prices, and it was not possible for them to know the tax status of their players, who lived in different jurisdictions.
They said the ad made it clear that tax and other deductions can be made from the profits.
It said that the website made it clear to consumers that they were betting on the result of lotteries instead of entering them.
The ASA said the conditions on the website said that the payout could be lower than indicated if it was taken as a one-off amount, and possibly even further reduced to copy how US taxes could reduce the profits of the lottery, but that this had to happen prominently where the amounts of the prize fund were quoted.
It also noted the general impression that consumers were given the opportunity to play the Mega Millions lottery, among other things, although the site offered consumers the opportunity to bet on the outcome via a gaming operator.
The ASA said: "Because consumers probably did not understand the ad as a whole, they were given the chance to bet on the outcome of a lottery through a gaming operator, instead of taking part in the lottery itself, we concluded that the ad was misleading. "
It added: "We have told LottoGo.com to make it clear as soon as price funds were quoted, the extent to which profits can be subject to deductions.
"Moreover, they must make it clear that consumers are not offered the opportunity to participate in a lottery, but to bet on the outcome."
In a separate statement, the ASA found that a website that promotes scratch cards for charity has violated rules by appealing to children in particular.
Rieves.co.uk contains images of different scratch cards with cartoon-like images of a bee with a crown and ruffle, snowmen, a pig and a fairy that looked like a gnome standing next to a rainbow.
Rieves said it was not in her interest to focus on young people or vulnerable people and believed that their games had no special attraction to children.
The ASA forbade the ads and said: "We felt that the bright, colorful designs in the ads and cartoon-like images would probably appeal to children."