Valid from 01/10/2005
Section 11
SCHEDULE 1E+W+SBetting: Prize Competitions: Definition of Payment to Enter
IntroductionE+W+S
1E+W+SThis Schedule makes provision about the circumstances in which a person is to be or not to be treated for the purposes of section 11(1)(b) as being required to pay to participate in an arrangement.
Meaning of paymentE+W+S
2E+W+SFor the purposes of section 11 and this Schedule a reference to paying includes a reference to—
(a)paying money,
(b)transferring money's worth, and
(c)paying for goods or services at a price or rate which reflects the opportunity to participate in an arrangement under which a participant may win a prize.
3E+W+SIt is immaterial for the purposes of section 11 and this Schedule—
(a)to whom a payment is made, and
(b)who receives benefit from a payment.
4E+W+SIt is also immaterial for the purposes of section 11 and this Schedule whether a person knows when he makes a payment that he thereby participates in an arrangement as a result of which he may win a prize.
Stamps, telephone calls, &c.E+W+S
5(1)For the purposes of section 11 and this Schedule a reference to paying does not include a reference to incurring the expense, at a normal rate, of—E+W+S
(a)sending a letter by ordinary post,
(b)making a telephone call, or
(c)using any other method of communication.
(2)For the purpose of sub-paragraph (1)—
(a)a “normal rate” is a rate which does not reflect the opportunity to participate in an arrangement under which a person may win a prize, and
(b)ordinary post means ordinary first-class or second-class post (without special arrangements for delivery).
Payment to discover whether prize wonE+W+S
6E+W+SFor the purposes of section 11 and this Schedule a requirement to pay in order to discover whether a prize has been won under an arrangement shall be treated as a requirement to pay to participate in the arrangement.
Payment to claim prizeE+W+S
7E+W+SFor the purposes of section 11 and this Schedule a requirement to pay in order to take possession of a prize which a person has or may have won under an arrangement shall be treated as a requirement to pay to participate in the arrangement.
Choice of free entryE+W+S
8(1)For the purposes of section 11 and this Schedule an arrangement shall not be treated as requiring a person to pay to participate if under the arrangement—E+W+S
(a)each person who is eligible to participate has a choice whether to participate by paying or by sending a communication,
(b)the communication mentioned in paragraph (a) may be—
(i)a letter sent by ordinary post, or
(ii)another method of communication which is neither more expensive nor less convenient than participating by paying,
(c)the choice is publicised in such a way as to be likely to come to the attention of each person who proposes to participate, and
(d)the system for allocating prizes does not differentiate between those who participate by paying and those who participate by sending a communication.
(2)In this paragraph “ordinary post” has the meaning given by paragraph 5(2)(b).
Power to make regulationsE+W+S
9E+W+SThe Secretary of State may make regulations providing that an activity of a specified kind or performed in specified circumstances is to be or not to be treated for the purposes of section 11 as paying to participate in an arrangement.