A foreign citizen who was ineligible to enter an Australian lottery has failed in his bid to get Lottoland to pay a $700 million fine, as well as paying him $201 million on the basis that he would have won that amount — if his bet had been successful.

Key points: The man was ineligible to enter as a Sri Lankan national, which is on Lottoland's excluded countries list

The man was ineligible to enter as a Sri Lankan national, which is on Lottoland's excluded countries list He was refunded the $50 he had spent on three bets, two which were unsuccessful and one which was voided

He was refunded the $50 he had spent on three bets, two which were unsuccessful and one which was voided He sought $201 million in compensation on the basis he would have won that amount if his third bet had won

The Sri Lankan national was living in Perth at the time he placed three bets totalling $50 on April 18 and 19 last year.

Two of the bets were unsuccessful and the third was voided when Lottoland identified the man as being a national of a country on its excluded list.

He had spoken with a Lottoland employee about setting up an account and said he was a temporary resident in Australia, from Sri Lanka, and asked whether he was eligible.

The man was advised that in order to have his account verified, he would need to provide proof of identity and proof of address, and to review Lottoland's terms and conditions of entry.

But he was also advised to nominate Australia as his country of residence.

One of Lottoland's terms states that it "is entitled to void a bet at any time if the player is found to be or has been in breach at any time" of its terms, one of which being that players not be from a country on the excluded list.

Sri Lanka is listed as an excluded country by Lottoland's Financial Action Task Force as part of its anti-money-laundering and counter-terrorism financing compliance processes.

"The complainant states that after receiving misleading information from a Lottoland employee, the complainant was able to open a wagering account with Lottoland and place three bets totalling $50 despite the fact that the complainant is a citizen of a country whose citizens and residents are excluded from opening a wagering account with Lottoland," the Northern Territory Racing Commission stated in its decision, released this week.

"The complainant is concerned that had any of his wagers been successful, Lottoland would not have paid out the wagers as winning bets, which may have resulted in negative health consequences for the complainant.

The day after Lottoland voided the man's account, he lodged a complaint with the Northern Territory Racing Commission.

Man sought $700m fine

Lottoland advised the man he would be refunded the $15 of his voided bet, and eventually also agreed to refund the $35 the man had spent on two losing bets before his account was cancelled.

The bookmaker apologised for the error and advised the complainant that the issue had been raised with the employee he spoke to in order to avoid the issue recurring.

"The complainant is seeking payment from Lottoland of $201 million being the amount he would have won had his third wager been a winning wager," the report stated.

"The complainant is also seeking for the commission to penalise Lottoland in the amount of $700 million being the total of the winning wagers for each of the lotteries the complainant placed a wager on."

The commission found that despite the advice provided to the man to list his address as Australia, he was in breach of Lottoland's terms and conditions when he "provided incorrect information" that he was not a person on the excluded list when registering his account.

The man's bets were therefore not lawful, the commission stated.

"This being the case, had the wagers that were placed been winning wagers (which all three wagers were not) they were bets in the Commission's view that were not lawful in accordance with the Act and as such would not have been payable as winning bets," the Commission said.