The Lotteries Act (No 57 of 1997) regulates lottery activities and provides the basic framework for the management and operation of a National Lottery.
Part I of the Act deals with the National Lottery. Among other matters, it:
- Establishes the National Lotteries Board and sets out how it should function.
- Provides for the awarding of a licence to conduct the National Lottery.
- Establishes the National Lottery Distribution Trust Fund (NLDTF).
- Outlines the broad approach to the allocation of NLDTF funds.
Part II of the Act regulates other lotteries, including private lotteries and society lotteries. It deals extensively with regulating society lotteries which are a means of fund-raising for non-profit organisations.
Part III of the Act comprises general provisions including regulations and penalties.
The Act came into effect in March 2000 and has been amended by:
- Lotteries Amendment Act No 10 of 2000.
- Prevention and Combating of Corrupt Activities Act No 12 of 2004.
- Consumer Protection Act No 68 of 2008.
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Prevention and Combating of Corrupt Activities Act
The Prevention and Combating of Corrupt Activities Act No 12 of 2004 contains wide-ranging provisions on corrupt activities. Its interest in relation to lotteries operations lies in:
- Section 16 which deals with corruption in gambling and games of chance.
- The amendments it introduces to the Lotteries Act in terms of dealing with charges and/or convictions under the Corrupt Activities Act of members of the National Lotteries Board and certified managers of society competitions.
Consumer Protection Act
The Consumer Protection Act No 68 of 2008 is relevant to the National Lotteries Board because Section 36 regulates promotional competitions and the Act repeals Section 54 of the Lotteries Act which dealt with the same matter.
At the core of Section 36 is the principle that no consideration may be paid to the organiser of a promotional competition by participants in the competition. This is similar to the earlier provision in the Lotteries Act, but the newer legislation also contains other consumer protection measures in relation to promotional competitions.
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