Lottoland Scores Victory in Google Ads Dispute in South Africa

Lottoland, a licensed bookmaker under the Western Cape Gambling and Racing Board, has successfully secured interim relief from the Competition Tribunal, enabling it to advertise on Google Ads. The tribunal ruled in favour of Lottoland after Google barred its advertisements, citing alleged breaches of local legislation.

Lottoland offers fixed-odds betting on international lottery outcomes. Instead of purchasing tickets, users place bets on the results of lotteries worldwide. However, the US-based tech giant claimed that this business model contravenes South African laws governing lotteries, potentially exposing Google to legal liability.

---

 

 

Dispute Over Fair Treatment

In response, Lottoland lodged a complaint with the Competition Commission, arguing that Google’s actions were unjustified. The company pointed out that competitors such as Hollywood Bets, World Sports Betting, Betway, and Netbet (operating as Sportingbet) were still permitted to advertise similar services.

Lottoland’s ban from Google Ads had severe repercussions, including a marked decline in new customer sign-ups and revenue. The tribunal acknowledged these challenges, recognising the significant commercial harm caused by Google’s decision.

Tribunal’s Interim Order

The Competition Tribunal found that Google had not provided sufficient evidence that Lottoland violated the Lotteries Act. Moreover, it highlighted that Google permitted other companies to advertise fixed-odds betting services, despite claiming these offerings were illegal.

As a result, the tribunal ordered Google to allow Lottoland access to its ad platform for six months or until a final decision is reached in the dispute. This ruling ensures Lottoland can compete on a more level playing field with its rivals in the online betting industry.

Broader Context: Online Gambling Regulation in South Africa

The case also underscores the broader issue of online gambling regulation in South Africa. Since 2009, proposed legislation to regulate the industry has faced significant delays. However, the Democratic Alliance recently tabled new draft legislation aimed at addressing this regulatory vacuum.

Lottoland’s temporary victory highlights the complex intersection of technology, competition law, and gambling regulation in South Africa. Whether this interim relief becomes permanent will depend on the outcome of further tribunal hearings.