Regulating Lotteries

Private Lotteries:

The NLC regulates the National Lottery, other lotteries and Sports Pools.

 

The NLC monitors and regulates the running of various lottery competitions, including those organised by non-profit organisations to raise funds and by companies to promote their goods and services.

Our concern is to ensure that these competitions comply with relevant legislation, and that opportunities for financial mismanagement and fraud are greatly curtailed. Our priority is to protect the public from exploitation, but we also aim to guide organisations so that competitions are viable and achieve their fund-raising objectives.

Competition organisers are encouraged to abide by the law and register their activities with the NLC.

The Lotteries Act 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 Commission or report to the commission but they do need to observe the following provisions:

 

AUTHORIZATION:

 

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.

Also consult:

Lotteries and the law

Section 37 of the Lotteries Act http://www.nlcsa.org.za/acts/

Regulations on the conduct of private lotteries

 

PUBLICITY LIMITS:

 

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.

 

MONETARY LIMITS:

 

The Price Of A Single Ticket May Not Exceed Rl0 And The Total Value Of All Tickets Available In A Single Lottery May Not Exceed Rl0 000.

The Total Value Of Prizes In Any Private Lottery May Not Exceed Rl0 000.

Also consult:

Lotteries and the law

Section 37 of the Lotteries Act http://www.nlcsa.org.za/acts/

Regulations on the conduct of private lotteries

 

PUBLICITY LIMITS:

 

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.

 

Also consult:

Lotteries and the law

Section 37 of the Lotteries Act http://www.nlcsa.org.za/acts/

Regulations on the conduct of private lotteries

 

PROPER MANAGEMENT:

 

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.

 

TYPES OF ILLEGAL LOTTERIES

 

  • Fundraising competition conducted by a registered society (society in terms of section 41 of the Lotteries Act) without authorisation of the Commission
  • Fundraising competitions conducted by non-profit organisations without the approval of the Commission
  • Competitions (other than promotional competitions) conducted by profit- making companies for financial and/or commercial gain
  • Competition conducted by individuals for private financial gain
  •  Competitions conducted by profit-making companies for the benefit of non-profit organisations without the authorisation of the Commission
  • Fahfee (also known as mochaina)
  • Ill Scams received via sms, phone calls, emails and letters; and Lotteries conducted outside the Republic that may also be accessed viainternet (prohibited in terms of section 59 of the Lotteries Act).

 

Information is available from the following sources on the NLC website, www.nlcsa.org.za :  Ill Lotteries Act 57 of 1997, as amended Private Lotteries Regulations (No.R.414)

Society Lottery Regulations (No.R.415)

Lotteries Incidental to Exempt Entertainment Regulations (No.R.413)

For more information, please contact the Compliance Division of the National

Lotteries Commission at 012 432 1300 OR via email at: compenforce@nlcsa.org.za