A lottery is the distribution of prizes by chance, where a person taking part makes a payment or gives a consideration in return for obtaining a chance of a prize.
A competition, unlike a lottery, is not based purely on chance but involves a substantial degree of skill. Thus, if the skill level of a game is so low that almost anyone could answer correctly and so go forward to a draw, the ‘competition’ may actually be a lottery and should be run according to the appropriate legislation.
Lotteries offer a positive opportunity to supporters to raise funds in an ethical and secure way. There is absolute parity of opportunity between each chance in a lottery.
Lotteries for charitable causes must, however, be run in accordance with the law. Although the above definition remains the same, lotteries run in Northern Ireland are subject to separate legislation.
The Institute of Fundraising is currently revising its Code of Fundraising Practice: Raffles and Lotteries to reflect changes to the law under the provisions of the Gambling Act 2005 which can into effect on 1 September 2007. For urgent queries, contact the Policy Team or the Gambling Commission.
