Indecopi sanctions Nexlot for promoting a foreign lottery

Indecopi sanctions Nexlot for promoting a foreign lottery

Peru's competition regulatory body has taken strong action against the company Nexlot S.A.C. by confirming that its product, Torito Mega Millions, operated under misleading advertising premises that deliberately confused the public. The Specialized Chamber for the Defense of Competition ruled in the second instance that the company must immediately and definitively cease any type of promotion of this lottery, in addition to facing an economic sanction exceeding 40,000 soles. The official resolution puts an end to a controversy initiated by a complaint from the Sociedad de Beneficencia de Huancayo, making it clear that transparency in the gambling sector is an indispensable requirement to operate in the Peruvian market.

The main fault detected by the authorities lies in the very nature of the service offered to bettors. While Nexlot presented itself to citizens as the organizer of its own millionaire lottery, the technical investigation showed that the company merely acted as an intermediary managing the purchase of tickets for lotteries based abroad. This triangulation of funds and prizes was never communicated honestly or prominently to users, who participated believing they were part of a local competition when, in reality, their luck depended on international lotteries completely unrelated to the direct organization of the sanctioned firm.

In addition to this structural deception, various advertising claims proved to be completely false after Indecopi's audit. The company emphatically stated that its millionaire jackpot was something never before seen in the country, maliciously omitting that since 2021, other operators already allowed Peruvian consumers to access those same international prizes. Similarly, the advertising claimed that the lottery could only be played within the national territory, despite the operational reality allowing residents abroad to also compete for the advertised prize, contradicting even what was stipulated in its own terms and conditions.

The imposed sanction, equivalent to approximately 12,000 dollars, is accompanied by the strict obligation to dismantle all advertising infrastructure linked to the Torito Mega Millions brand across all the company's dissemination channels. With this ruling, Indecopi seeks to restore confidence in the sector and protect consumers from commercial strategies that distort competition by concealing vital information. This precedent reinforces vigilance over the sports betting and gambling market in Peru, sending a clear message about the legal consequences of misleading citizens to obtain commercial gain.

Tags: Peru, online lotteries Peru, Peru lottery tickets, lotteries in Peru