Lottoland Files Lawsuit Against Google in South Africa Over Advertising Ban
Lottoland, a company known for offering the chance to bet on lottery results, has entered a legal battle with Google in South Africa. Lottoland's local branch accuses the tech giant of impeding their ability to advertise due to their business model. Both parties are now awaiting the court's decision.
In a recent claim, Lottoland South Africa alleged that Google had halted their access to the advertising services platform. The complaint requested either an injunction or the permanent reversal of the ban implemented against them. The Competition Tribunal of South Africa agreed to hear the case, with representatives from both sides presenting their arguments on Wednesday. The court will deliver its verdict later this week or in the following week.
Discrimination and Abuse of Dominance
Lottoland claims that Google specifically targeted them, arguing that the company doesn't allow other gambling companies to advertise without issue. This results in an "abuse of dominance" lawsuit that accuses Google of misusing its market power. Lottoland seeks a six-month injunction to allow them to advertise until a final decision from South Africa's Competition Commission is made.
Google maintained that it hadn't singled out Lottoland and defended its need to defend against "millions" of pending lawsuits. The company did admit, however, that it intentionally restricted Lottoland's advertising due to other reasons.
Attorney Michelle le Roux stated in court that Lottoland's landing page didn't adhere to Google's internal policies, raising questions about potential legal violations. The company believes that Lottoland's wager offerings might be in conflict with South African laws.
Lottoland operates in several countries, including Ireland, Germany, Australia, and more. It has varied opinions among these nations, with anti-gambling activists asserting that no one should be allowed to bet on lotteries.
In Germany, Lottoland faced attempts to block the platform, resulting in an order for ISPs to prevent users from accessing it. However, the court overturned the ban this past February.
Uncertain Future
While Google argued that Lottoland's products, such as fixed-odds wagers on South Africa's National Lottery, contravene the National Lotteries Act, no explicit language bans lottery bets in the 2015 update of the law.
Despite the lack of clear language on the matter, Lottoland could face challenges. In 2021, a South African judge ordered LottoStar to stop offering wagers on National Lottery products. This controversy resurfaced in the courts.
The National Lotteries Commission has been attempting to take control of the situation, advocating for stricter measures to oust platforms like Lottoland from the market for years. However, these efforts have been unsuccessful, with the cases persisting in the courts.
More pressing concerns have arisen for the Commission. Authorities recently revealed that they're investigating over 15K nonprofit organizations and companies for stealing from the entity. It's alleged that these parties colluded with former National Lotteries Commission officials to steal over ZAR1 billion (US$56.1 million) in lottery funds.
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Source: www.casino.org
