e-Lottery Syndicate Closed Down - So What Happened?
e-Lottery Syndicate ran a series of very popular lottery syndicates for over 8 years.
Without any prior warning the company (VWD / Virtual World Direct) issued a closure notice on their website on 10th December 2010. For most players this was the only notice ever issued. It's not clear why the company didn't contact all players by email to advise e-Lottery had closed down.
e-Lottery Syndicate's Statement
The official company notice stated the closure was brought about by "legal action brought against the Company by the UK Department of Business Innovation and Skills alleging misleading advertising".
The notice denied the allegation, but claimed they were unable to defend themselves due to the high legal costs this would involve.
The BIS (now the Department for Business, Energy & Industrial Strategy) when asked for comment stated they are "unable to confirm or deny whether a particular company is, or has been the subject of investigation".
Digging Deeper
It has since however come to light that apparently the BIS were involved, and did petition for closure of the company. The BIS investigation seems to have concluded the company was not operating in the public interest for the following reasons:-
- The company's claim that its number selection system increases the chances of winning the lottery are false.
- The company made false representations that the chance of participating in a jackpot win are enhanced by its number selection system.
- The company made false representations that a University Mathematics Professor worked on the company's system and verified its claims.
It's not 100% clear how points 1 and 2 were reached. The UK syndicates bought 44 entries, which does give 44 times the chance of winning versus a single ticket.
But the objection seems to relate to the way the numbers were selected, or rather the expanation of this. e-Lottery selected 5 main numbers and then combined this with every possible 6th number.
Now clearly this does not increase chances beyond the fact that 44 tickets are being purchased. To me this was always very clear. But the BIS appear to believe that e-Lottery were claiming something more.
Point 3, claiming a Professor checked the figures when in fact they didn't, just seems to be plain silly on behalf of e-Lottery. I suspect this was more 'naive marketing' than any real intent to mislead. It was probably listed by the BIS as it adds further weight to points 1 and 2.
In Conclusion
I'm surprised to discover the real reasons behind the closure. I certainly accept that if people were misled about the way the syndicate worked, then that is a major cause for concern and action would be required.
I'm not personally aware of anyone who feels misled, although I am aware of a lot of people who are sad to see e-Lottery closed down. So I can't help feeling the action does seem far out of proportion to the offence.
Could the BIS not have simply warned the company they were unhappy with the way the syndicate was being described? And perhaps demand that:-
- a) the explanation be made clear to their satisfaction
- b) existing players be emailed to ensure they also clearly understood?
e-Lottery Syndicate to their credit did issue refunds for outstanding balances after the closure. But clearly should have taken better legal care over the wording of their marketing.
What Now?
I can't help feeling there is still more to this story. Let me know if you have anything to add.
Finally - if you're an old e-lottery customer looking for a new syndicate, start here with our online lotto syndicates reviews.
