The Gambling Act 2005


Rules for Race Nights and other non-commercial exempt lotteries
Rules for non-commercial gaming and equal chance gaming

The Gambling Act 2005 defines and regulates gaming in two ways:
Licensable (Commercial, or 'for-profit'),
and Exempt (Non-commercial, or 'not-for-profit')
The Act provides for exempt private and non-commercial gaming and lotteries, subject to strict criteria. All other gaming is illegal unless licenced either by the local authority or the Gambling Commission.

EXEMPT GAMING:

Definition of Exempt 'Non-Commercial Prize Gaming'
(Sections 297, 299 & 300)
The Gambling Act provides for two types of 'non-commercial' exempt gaming. Prize Gaming (Section 299) and 'Equal Chance Gaming' (Section 300). These do not require operator's licences or registration, but to be exempt as they must be organised in support of a charity or good cause and not for personal gain. All other gaming is illegal unless licenced by the Local authority or The Gambling Commission.

Two types of non-commercial gaming are permitted:
(1) Non-commercial Prize Gaming (Section 299)
(2) Non-commercial equal chance gaming (Section 300)

Section 299 Defines 'Prize Gaming' as 'Non-commercial' Gaming as long as:
Prizes are put up in advance.
Prizes may be in cash or in kind.
There is no statutory limit on the value of prizes.
Note: The Act does not specify that prizes in kind cannot be supplied on 'Sale-or-Return' basis (i.e.: consignment stock)
Prizes are NOT dependent on the number of players
Prizes are NOT dependent on amount of money staked
There are no statutory limits on stakes, participation fees, or other charges.
All players must be present or identifiable.
There must be no 'remote' players (i.e. via internet, e-mail, camera, phone, etc)
The non-commercial event does not take place-
(a) on premises, other than a track, in respect of which a premises licence has effect
(b) on a track at a time when activities are being carried on in reliance on a premises licence, or
(c) on premises at a time when activities are being carried on under a temporary use notice.

Section 300 (Page 20/21) Defines 'Equal Chance Gaming' as 'Non-commercial' as long as:
The chances are equally fair to all participants
The value and number of prizes depends on the number of players taking part or the value of money staked.
There is a limit of £8 per person on the amount that may be staked on any one day (including participation fees and stakes)
There is a limit of £600 on the total value of prizes that may be won at a single event
Prizes may be in cash or in kind
All players must be present or identifiable.
There must be no 'remote' players (i.e. via internet, e-mail, camera, phone, etc)
The non-commercial event does not take place-
(a) on premises, other than a track, in respect of which a premises licence has effect,
(b) on a track at a time when activities are being carried on in reliance on a premises licence, or
(c) on premises at a time when activities are being carried on in reliance on a temporary use notice.


EXEMPT LOTTERIES:

Definition of Exempt Lotteries (Schedule 11 Section 258)
The Act provides for three types of exempt lottery. Only two of these are of interest. The third is a small society lottery and not suitable for fundraising purposes. Exempt lotteries do not require operator's licences or registration, but to be classed as 'non-commercial' they must simple lotteries as defined in clause 14 and be in support of a charity or good cause and not for personal gain or profit.

Definition of a 'simple lottery' (clause 14) (2):
Clause 14 (2) defines a 'simple lottery' as one where:
(a) persons are required to pay to participate
(b) one or more prizes are allocated to one or more members of a class
(c) prizes are allocated by a process relying wholly on chance
(d) results are arrived at wholly by chance
(e) the minimum age for participation is 16

Section 11 Part 3: Customer Lotteries
Para 20 (i) A 'Customer lottery' is exempt if:
(a) It is promoted by a promoter who occupies business premises in Great Britain.
(b) Tickets are sold only to customers of the promoters business whilst they are on the premises. NOTE: Tickets may be sold by the promoter or anyone on behalf of the promoter.
(c) All other conditions are satisfied
(d) The lottery is referred to as a Customer Lottery

Para 21: The lottery must be organised in such a way as to ensure that no profits are made to the promoter. NOTE: The promoter is the person who organises the event. Not the beneficiary or suppliers of goods or services to the event.

Para 27: Advertising may only be displayed on the business premises Advertising may only be on the distributed on the business premises Advertising may not be displayed elsewhere or on other premises
NOTE: It is permissible to distribute handbills on the premises.

Para 23: Each ticket must be a document, according to the requirements of section 253:

Para 24: (1) Tickets may only be sold by or on behalf of the Promoter
(2) Tickets must state that they are not transferable or will be void

Para 25: All tickets must state or specify:
(a) Name and address of promoter
(b) The class of persons eligible to buy NOTE: the MINIMUM age to participate is 16
(c) Tickets are not transferable or will be void (as in 24.2)

Para 26: The price for each ticket:
(a) must be the same for all tickets and chances
(b) must be on the ticket
(c) must be paid for in CASH
(d) must be paid for in full at the time the ticket is purchased
NOTE: There must be NO free or discounted entries

Para 27: The maximum individual prize value is £50 per chance.

NOTE: Prizes can be CASH or KIND
NOTE: No Rollovers. All results must be finalised at the event.
NOTE: Results must be made public as the event progresses.
NOTE: Even though not specifically stated in the Act it is unlikely that an event will be deemed a lottery if unsold chances are included in the result. Only SOLD chances should be included. Since the lottery is based on a DVD of a race that has already taken place, we cannot exclude runners that have not been sponsored. Therefore we ask that the promoter buys up any unused chances by way of sponsorship. This guarantees a winner in every race, and maximises the prize value. If the promoter wins he can claim any winnings or prizes for 'the house', which he can then keep or donate to the good cause being sponsored.

Section 11 Part 1: Incidental non-commercial lotteries
Para 1: A lottery is exempt if
(a) it is incidental to a non-commercial event within the meaning of para. 2
and
(b) is run in accordance with relevant regulations and all other conditions are satisfied.

NOTES: The lottery MUST NOT be the ONLY or MAIN part of an event.
On a Race Night, each race can be run as a separate lottery.
There is NO LIMIT on participation fees or amounts staked.
ALL stakes participation fees to be received in CASH
MINIMUM age to participate is 16
There is NO LIMIT to the value of prizes that may be awarded, only the amount that may be deducted to pay for them (see para 3 below)
Prizes may be CASH or KIND. Donated prizes are permitted.
Prizes may be 'value - dependent'

Para 3: Deductions from proceeds:
Organisers may not deduct more than the prescribed amount (currently £500) for prizes, irrespective of the actual costs, for each lottery.

Para 4: Organisers may not deduct more than £100 from each lottery for organising the event (irrespective of actual costs incurred)

Para 5: The event must be promoted wholly for purposes other than private gain.

Para 6: No rollovers. Results must be finalised at the event.

Para 7: There must be a link between lottery and event.
(a) Tickets must be sold on premises where the event takes place
(b) Results must be made public whilst the event takes place.

Acts repealed by the introduction of the Gambling Act 2005 on 30 September 2007:
The Gaming Acts of 1710, 1738, 1835, 1845, 1892, 1968
The Gaming Amendment Acts of 1973, 1980, 1982, 1986, 1987, 1990
The Betting, Gaming, and Lotteries Act 1963
The Betting, Gaming, and Lotteries (Amendment) Act 1984, 1985
The Lotteries Act 1975
The Lotteries (Amendment) Act 1984
Lotteries and Amusements Act 1976.
The Gaming (Bingo) Act 1985
The Bingo Act 1992
National Lottery Act 1993.
Licencing Act 2003 - Schedule 6 (Pages 29-31, 48-52, 62-66)