The Act defines “an exempt entertainment” as a bazaar, sale, fete, dinner, dance, sporting event or other entertainment of a similar character where there are no cash prizes.
Section 36 of the Act gives full details of the conditions that have to be observed in promoting a lottery as an incident to an exempt entertainment. Some examples of the conditions are that:
a) the proceeds, after deducting specified expenses, must, along with the proceeds of the “exempt entertainment” be used for the benefit of any deserving section of the public;
b) the total value of tickets sold or to be sold is not more than R10 000;
c) not more than R5 000 is used for the purchase of prizes;
d) the tickets may not be sold at more than R10 each.
Whilst only the Court can give an authoritative interpretation of the law, it is the view of the National Lotteries Commission that selling tickets in a shop is unlawful as exempt entertainment are construed as “once-off” events.
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