The Editor

Cape Argus

LOTTO AND WINIKHAYA

Nurjahan Khan’s letter in the Cape Argus of 19 June 2006 has reference.

Inasmuch as the National Lottery was set up to afford South Africans the opportunity win large prizes, the focus has been on contributions to Good Causes. To this effect, the National Lottery has contributed over R4,5 billion to the non-profit sector in South Africa since inception, making the National Lottery a major funder in South Africa.  This achievement is made possible through the participation of South Africans. 

Like Ms. Khan, many blame the National Lottery for substantial household expenditure displacement. This is however not true. Research commissioned by the Responsible Gambling Committee of the National Lottery has shown that only 0,5% of household expenditure is spent on the lottery. Half of those who participate in the lottery spend less than R20 per month, a further 30% spend between R21 and R50 per month. The National Lotteries Board and the Uthingo Management are committed to promoting responsible participation in the National Lottery. 

Ms. Khan is correct in questioning the high cost of participation in competitions via cellphones like the Winikhaya competition.  These competitions are run under the guise of promotional competitions but are in fact illegal lotteries.

In terms of the Lotteries Act, promotional competitions are lotteries conducted in a manner that will promote the use or sale of goods or services.  However, participants should not pay more than the normal cost of the item or service in order to participate. Since the average cost of an sms is way below R7,50, this competition is in contravention of the Lotteries Act.

The National Lotteries Board is not opposed to companies promoting their goods or services through competitions, provided that all legislation is adhered to.  It is the intention of the Board to clamp down on illegal lotteries and the public is advised that participation in illegal lotteries is unlawful.