Google must allow ads from online lottery betting company in South Africa — or ban them all

The Competition Tribunal has issued an interim order against Google Ireland and Google South Africa in a case brought by Lottoland South Africa.

It directed Google to permit Lottoland access to its advertising services so long as the search giant allows any company to advertise fixed-odds betting on the outcome of lotteries.

The Tribunal’s order applies for six months from 12 November or the conclusion of a hearing into the prohibited practices alleged by Lottoland, whichever is earlier.

The order comes after Lottoland filed an interim relief application.

Lottoland is a licensed bookmaker that offers fixed-odds bets on the outcome of various lotteries worldwide, including the South African national lottery, sporting events, and other betting contingencies.

It 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).

Lottoland alleged that Google terminated its access to Google Ads without justification while allowing access to its competitors.

Google contended that Lottoland’s offering of fixed-odds bets on the outcome of the national lottery in South Africa contravenes sections 57(1) and 57(2)(g) of the Lotteries Act.

It said that permitting Lottoland to advertise its services over Google Ads would expose Google to criminal liability and other commercial risks.

The search giant also submitted that its online advertising policies restrict the promotion of certain gambling activities.

Of particular relevance is that the promotion of lotteries is limited to state-licensed entities and that this restriction is in place to ensure compliance with the provisions of the Lotteries Act.

However, the Competition Tribunal was not convinced by Google’s arguments.

It said that Google did not present clear evidence that Lottoland is in breach of the Lotteries Act.

The Tribunal also said there were substantive disputes regarding the legality of Lottoland’s business as it relates to fixed-odds betting on the outcome of lotteries, and that it was not appropriate for it to attempt to determine these disputed issues.

Google’s argument was further undermined by allowing Lottoland’s competitors to advertise the same or similar services that the search giant had claimed contravened the Lotteries Act.