Other types of lotteries:
All lotteries are regulated by the Lotteries Act (No 57 of 1997) which defines a lottery as “any game, scheme, arrangement, system, plan, promotional competition or device for distributing prizes by lot or chance and any game, scheme, arrangement, system, plan, competition, or device which the Minister (of Trade and Industry) may by notice in the Gazette declare to be a lottery”.
A private lottery is distinguished by the following:
- It is run for and by members of a social or sporting club for purposes that are not connected with any form of gambling.
- It is organised for and by persons all of whom work or live on the same premises.
Requirement for running a private lottery legal
Private lotteries are essentially self-regulated. Organisers do not need to register with the National Lotteries Board or report to the board. But they do need to observe the following provisions.
In the case of a private lottery run at a sporting or social club, the governing body of the club must authorise the lottery in writing.
- The price of a single ticket may not exceed R10 and the total value of all tickets available in a single lottery may not exceed R10 000.
- The total value of prizes in any private lottery may not exceed R10 000.
- No written notice or advertisement of the lottery may be displayed except:
- On the club premises.
- On the property where participants work or reside.
- On the lottery tickets.
- No ticket may be sent through the post.
- The organiser of the lottery must be a member or the club or society and authorised in writing by the governing body to run the lottery.
- No management fee or expense allowance may be deducted from lottery proceeds. The only deductions allowed from the amount raised are for printing, stationery and notices.
- The income from the lottery must be used entirely for prizes or divided between prizes and the club fund.
- The maximum number of lotteries run by any club, workplace or residential entity is 12 a year.