Part 1Interpretation of Key Concepts
Lottery
I114Lottery
1
For the purposes of this Act an arrangement is a lottery, irrespective of how it is described, if it satisfies one of the descriptions of lottery in subsections (2) and (3).
2
An arrangement is a simple lottery if—
a
persons are required to pay in order to participate in the arrangement,
b
in the course of the arrangement one or more prizes are allocated to one or more members of a class, and
c
the prizes are allocated by a process which relies wholly on chance.
3
An arrangement is a complex lottery if—
a
persons are required to pay in order to participate in the arrangement,
b
in the course of the arrangement one or more prizes are allocated to one or more members of a class,
c
the prizes are allocated by a series of processes, and
d
the first of those processes relies wholly on chance.
4
In this Act “prize” in relation to lotteries includes any money, articles or services—
a
whether or not described as a prize, and
b
whether or not consisting wholly or partly of money paid, or articles or services provided, by the members of the class among whom the prize is allocated.
5
A process which requires persons to exercise skill or judgment or to display knowledge shall be treated for the purposes of this section as relying wholly on chance if—
a
the requirement cannot reasonably be expected to prevent a significant proportion of persons who participate in the arrangement of which the process forms part from receiving a prize, and
b
the requirement cannot reasonably be expected to prevent a significant proportion of persons who wish to participate in that arrangement from doing so.
6
Schedule 2 makes further provision about when an arrangement is to be or not to be treated for the purposes of this section as requiring persons to pay.
7
The Secretary of State may by regulations provide that an arrangement of a specified kind is to be or not to be treated as a lottery for the purposes of this Act; and—
a
the power in this subsection is not constrained by subsections (1) to (6) or Schedule 2, and
b
regulations under this subsection may amend other provisions of this section or Schedule 2.