3 Small lotteries incidental to exempt entertainments.E+W+S
(1)In this Act “exempt entertainment” means a bazaar, sale of work, fete, dinner, dance, sporting or athletic event or other entertainment of a similar character, whether limited to one day or extending over two or more days.
(2)Where a lottery is promoted as an incident of an exempt entertainment, that lottery is not unlawful, but the conditions set out in subsection (3) below shall be observed in connection with its promotion and conduct and, if any of those conditions is contravened, every person concerned in the promotion or conduct of the lottery shall be guilty of an offence unless he proves that the contravention occurred without his consent or connivance and that he exercised all due diligence to prevent it.
(3)The conditions referred to in subsection (2) above are that—
(a)the whole proceeds of the entertainment (including the proceeds of the lottery) after deducting—
(i)the expenses of the entertainment, excluding expenses incurred in connection with the lottery; and
(ii)the expenses incurred in printing tickets in the lottery; and
(iii)such sum, if any, not exceeding £50 or such other sum as may be specified in an order made by the Secretary of State, as the promoters of the lottery think fit to appropriate on account of any expenses incurred by them in purchasing prizes in the lottery,
shall be devoted to purposes other than private gain;
(b)none of the prizes in the lottery shall be money prizes;
(c)tickets or chances in the lottery shall not be sold or issued, nor shall the result of the lottery be declared, except on the premises on which the entertainment takes place and during the progress of the entertainment; and
(d)the facilities for participating in lotteries under this section, or those facilities together with any other facilities for participating in lotteries or gaming, shall not be the only, or the only substantial, inducement to persons to attend the entertainment.