Lottoland SA, which has been in existence for a decade and is privately owned by a company based in Gibraltar. Picture: Supplied
Nicola Mawson
Fixed odds lotto betting platform Lottoland South Africa has won an interim order in an antitrust case against Alphabet’s Google, with the Competition Tribunal ruling that the internet search giant must allow Lottoland SA to access Google Ads locally and in Ireland.
This ruling comes on the heels of an almost decade-long battle between Google and the European Commission over restrictions the European body said the search engine had placed in online search advertising.
In 2019, Google was fined €1.49 billion (approximately R28.5bn) over its online advertising practices, which the Commission said included preventing its competitors from advertising on the search engine, as well as reserving the best spots for its own adverts. That fine was overturned in September by the European Union General Court.
Lottoland SA, which has been in existence for a decade and is privately owned by a company based in Gibraltar, has now won an interim right to use Google Ads “to advertise fixed-odds betting on the outcome of lotteries,” a statement by the Tribunal said.
The argument was over Google not allowing Lottoland SA to advertise because it felt that the betting company contravened the Lotteries Act, while Lottoland SA’s competitors were allowed to book space on the search engine.
Lottoland SA competes with other licensed bookmakers in South Africa such as Hollywood Bets, World Sports Betting, Betway, Betfred (which owns Lottostar), and Netbet (which trades as Sportingbet).
The ruling is in force for either six months or when the hearing into Lottoland SA’s allegations that Google was acting in a manner that was uncompetitive is concluded. In July last year, Lottoland SA sought a similar interim order.
Google Ads enables advertisers to display ads to Google users, with Google Ireland acting as the service provider for Google Ads in South Africa.
Yet, “Lottoland alleged that Google terminated its access to Google Ads without justification while allowing access to its competitors, causing it financial harm and distorting competition in the market that Lottoland operates in, to the detriment of consumers,” the Tribunal stated.
Google, in rebuttal, argued that Lottoland SA’s offering of fixed-odds bets on the outcome of the national lottery in South Africa contravened some sections of the Lotteries Act, arguing that it was promoting a lottery, which is limited to state-licensed entities.
On its website, Lottoland SA offers the option to bet against the odds of the Lotto and Powerball being won. It states that gamers place a bet on the likelihood that the numbers they select might be drawn. “But keep in mind, you are not buying a lottery ticket in the official draw.”
The Tribunal stated that Google, which is South Africa’s most popular search engine, “has not presented clear evidence that Lottoland is in breach of the Lotteries Act”.
In its statement, the Tribunal also noted that Google claimed that supplying Lottoland SA with access to Google Ads created the potential for criminal liability and other commercial risks.
“However, this argument was undermined by the fact that Google allowed Lottoland’s competitors to advertise the same or similar services which Google claimed contravenes the Lotteries Act.”
In addition, the Tribunal said, it was not up to Google to resolve a dispute over Lottoland’s legality. Lottoland’s website states it is “fully licensed and regulated by the Western Cape Gambling Board”.
During the COVID-19 lockdown, one Lottoland winner from the Western Cape placed a R90 bet on the German Lotto. He matched all five numbers and the SuperBall and won R381 175. A week later, a Gauteng resident won R87 469, just 24 hours after betting on five numbers.
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