Lottoland hit with £150,000 fine for advertising failings
Gambling Commission says operator failed to make it clear to consumers they were betting on a lottery rather than entering a draw
The Gambling Commission has fined Lottoland £150,000 for failing to make clear to consumers they were betting on a lottery outcome rather than participating in the draw itself.
The fine is a follow up to an ASA ruling back in February which declared that a Lottoland radio advert had failed to clearly make the distinction.
Imagery designed by Comparethelotto.com
The ASA’s ruling sparked a Gambling Commission investigation, which ultimately found Lottoland was similarly “ambiguous” in its third party marketing, website and social media promotions.
Richard Watson, Gambling Commission programme director for enforcement and intelligence, said: “In this case the operator used ambiguous terminology in their marketing and advertising, which was misleading. That is not acceptable and the £150,000 penalty package reflects the seriousness of Lottoland’s failures.
“We expect all operators will learn the lessons from this case and take action to ensure that their consumers are clear about what they are being offered.”
Ads implied LottoLand offered the opportunity to take part in a lottery as opposed to bet on the outcome of lottery https://t.co/16JZkrjeU5 pic.twitter.com/OU2VtIlg7r
— Gambling Commission (@GamRegGB) June 27, 2017
The £150,000 fine will go toward socially responsible causes, while Lottoland must also pay the Commission’s costs of £9,000 and agree to a public statement outlining its failings for industry wider learning.
Lottoland CEO Nigel Birrell said: “Lottoland was happy to work cooperatively with the Gambling Commission on this important matter.
“Lottoland has further enhanced its procedures and controls to ensure all future marketing communications are fully compliant.
“We look forward to continuing to work in close partnership with the Gambling Commission as we continue to develop and pioneer the lotto betting category.”
The heavy fine continues the Commission’s crackdown on UK licensees, with five online gaming operators currently facing enforcement action from the CMA and Commission thanks to their “unfair” terms and conditions on sign up offers.