Running a UK Lottery

The remit was to carry out research on the subject of whether it would be possible to run a type of lottery with a skills based question and thereby exempt a UK company from having to obtain a lottery licence.

We visited multiple websites and also made contact with the UK Law Society and spoke to three solicitors’ practices that are said to be conversant in gambling, lottery and licensing regulations in the UK.

The information and views received from the above on the subject matter were consistent and therefore I feel that the information is correct.

By running a lottery/competition but making entry subject to successfully answering or completing a skills based question or challenge, the activity would not fall within the scope of a lottery and therefore a licence would not be required.

The definition of what constitutes a skills based question or task is that the challenge must be such that it could reasonably be expected that some entrants would not succeed in correctly answering or completing the challenge.

There is no statutory or legal rule which defines what percentage of or how many people should normally fail the test in order for it to be deeded to be a skills based challenge.

I was advised that by seeking the advice of a Solicitor it would demonstrate in itself that legal advice had been sought and this would bode well for the company if the competition was even challenged.

If a Solicitor was used to discuss the matter and the specific proposals of a venture, they would be able to advise on the details in the light of their knowledge and current regulations.

The following websites provide additional information:

• http://www.gamblingcommission.gov.uk
• http://www.lacors.gov.uk/lacors/home.aspx
• http://www.culture.gov.uk
• http://www.out-law.com/
• http://lotteriescouncil.org.uk/
• http://www.independent.co.uk/news/uk/politics/lottery-laws-face-sweeping-reforms-to-open-up-chances-for-competitors-702937.html

I hope that the information proves useful to a future decision.