A customer lottery is a lottery run by the occupiers of business premises, who sell tickets only to customers present on the premises.
The Gambling Act 2005 requires that in customer lotteries:
- the lottery must be arranged to ensure that no profit is made
- tickets may be sold or supplied only by or on behalf of the promoter
- no advertisement may be displayed or distributed, except on the business premises, nor sent to any other premises
- another customer lottery cannot take place within seven days on the same business premises
- tickets (and the rights they represent) are non-transferable
- no ticket may result in the winner receiving a prize worth more than £50
- no roll-overs of prizes are permitted
Each ticket in a customer lottery must state:
- the name and address of the promoter of the lottery
- the people to whom the promoters can sell or supply tickets
- that the rights conferred by the sale or supply of a ticket in a customer lottery are not transferable
The following would normally be exempt from regulatory control under the Act:
- prize competitions and free prize draws
- prize skill competitions
- free draws
For more information, contact the Gambling Commission.