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.