Where a lottery is promoted as an incident of an exempt entertainment, that lottery is not unlawful, but the conditions set out in paragraph (2) shall be observed in connection with its promotion and conduct.
The conditions referred to in paragraph (1) are—
that the whole proceeds of the entertainment (including the proceeds of the lottery) after deducting—
the expenses of the entertainment, excluding expenses incurred in connection with the lottery; and
the expenses incurred in printing tickets in the lottery; shall be devoted to purposes other than private gain;
that 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
that the facilities for participating in lotteries under this Article, 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.
Regulations may impose such restrictions (in addition to those specified in paragraph (2)) as the Department may consider necessary or expedient with respect to a lottery promoted as an incident of an exempt entertainment.
The person who organises the exempt entertainment shall—
make and keep records and accounts relating to that entertainment;
record in those accounts the purposes for which the proceeds of the entertainment are to be applied; and
inform all potential participants of those purposes.
Any person who organises an exempt entertainment at which a lottery is to be promoted under this Article shall, not less than 7 days before the date on which the entertainment is to take place, serve notice of the entertainment upon the sub-divisional commander of the police sub-division in which the premises where the entertainment is to take place are situated.
If any of the provisions of this Article or of any regulations made under this Article is contravened in relation to any lottery, every person concerned in the promotion or conduct of that lottery shall be guilty of an offence.
In any proceedings for an offence under paragraph (6) it shall be a defence for any person charged to prove that the contravention occurred without his consent or connivance and that he exercised due diligence to prevent it.