Q&As

Is a subscription to join an app which offers goods at discounted prices together with the opportunity to enter prize draws likely to be considered a payment to enter under the rules on lotteries and prize promotions?

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Published on LexisPSL on 12/07/2019

The following TMT Q&A provides comprehensive and up to date legal information covering:

  • Is a subscription to join an app which offers goods at discounted prices together with the opportunity to enter prize draws likely to be considered a payment to enter under the rules on lotteries and prize promotions?
  • Lotteries
  • The ‘requirement to pay to participate’
  • Alternatives

Is a subscription to join an app which offers goods at discounted prices together with the opportunity to enter prize draws likely to be considered a payment to enter under the rules on lotteries and prize promotions?

Lotteries

Under the Gambling Act 2005 (GA 2005) most types of lotteries are illegal. A lottery must comply with the relevant provisions of GA 2005 and can only be lawfully operated under a lottery operating licence unless it falls within one of the limited exceptions.

The three elements of a simple lottery are:

  1. the requirement to pay to participate

  2. the allocation of prizes, and

  3. the determination of winners wholly on chance

Only one of these elements

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