Thank you for your email dated 10 November 2008.
Your enquiry would work on the same principal as a house lottery/raffle.
It is unlawful in the UK to perform a lottery for private or commercial gain; therefore you would be unable to raffle a house. If you wish to perform it as a competition you can do this without obtaining a licence but it must be based on skill rather than just chance.
The Commission does not regulate prize (skill competitions) or free draws, although, we do monitor the boundary between them and lotteries. To help operators of prize competitions and free draws to distinguish them from lotteries we have issued guidance (attached). We need to be careful that we are not drawn into ‘approving’ or advising on the content and structure of schemes for which we have no statutory or regulatory responsibility.
It is the responsibility of the designers and promoters of prize comps to ensure that they are lawful and they should be better placed than Gambling Commission say whether or not they are based on skill rather than chance and can seek independent legal advice if they wish.
A genuine prize competition is one that contains a requirement to exercise skill or judgement or to display knowledge and where it can reasonably be expected that that requirement will either:
(a) Prevent a significant proportion of people who wish to participate from doing so (section 14(5)(b) of the Gambling Act 2005 Act); or
(b) Prevent a significant proportion of people who participate from receiving a prize (section14 (5) (a)).
If either one of these barriers to entry or success can be shown, the process will not be deemed to rely wholly upon chance, and the arrangement will not be a lottery.
You will need to make sure the proposed competition is lawful in the UK and will need to refer to a specialist licensing firm if required as the Commission is unable to give detailed advice on matters it does not regulate.
The advice in this email is not a comprehensive or binding interpretation of the law and the Commission suggests that you seek independent legal advice before proceeding with your proposals. A copy the Gambling Act 2005 can be found via the following link:
http://www.opsi.gov.uk/acts/acts2005/ukpga_20050019_en_1
The Law Society have added some guidance information on their website for solicitors please see the link below
http://www.lawsociety.org.uk/productsandservices/practicenotes/housecompetitions/1436.article
If you have any further queries please do not hesitate to contact the enquiries team on 0121 230 6666.
Yours Sincerely,
Anna-Marie Dangerfield
Licensing
Gambling Commission
Victoria Square House
Victoria Square
Birmingham B2 4BP
Tel: 0121 230 6666
Fax: 0121 230 6720