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(1)The conduct of a lottery which, but for this subsection, would to any extent constitute a licensable activity by reason of one or more of the prizes in the lottery consisting of alcohol, is not (for that reason alone) to be treated as constituting a licensable activity if—
(a)the lottery is promoted as an incident of an exempt entertainment,
(b)after the deduction of all relevant expenses, the whole proceeds of the entertainment (including those of the lottery) are applied for purposes other than private gain, and
(c)subsection (2) does not apply.
(2)This subsection applies if—
(a)the alcohol consists of or includes alcohol not in a sealed container,
(b)any prize in the lottery is a money prize,
(c)a ticket or chance in the lottery is sold or issued, or the result of the lottery is declared, other than at the premises where the entertainment takes place and during the entertainment, or
(d)the opportunity to participate in a lottery or in gaming is the only or main inducement to attend the entertainment.
(3)For the purposes of subsection (1)(b), the following are relevant expenses—
(a)the expenses of the entertainment, excluding expenses incurred in connection with the lottery,
(b)the expenses incurred in printing tickets in the lottery,
(c)such reasonable and proper expenses as the promoters of the lottery appropriate on account of any expenses they incur in buying prizes in the lottery.
(4)In this section—
“exempt entertainment” has the same meaning as in section 3(1) of the Lotteries and Amusements Act 1976 (c. 32);
“gaming” has the meaning given by section 52 of the Gaming Act 1968 (c. 65);
“money” and “ticket” have the meaning given by section 23 of the Lotteries and Amusements Act 1976; and
“private gain”, in relation to the proceeds of an entertainment, is to be construed in accordance with section 22 of that Act.
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