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<p>We are aware of concerns, including those raised by the DCMS Select Committee in
its recent report What next for the National Lottery?, about the different approaches
to society lotteries (regulated under the Gambling Act 2005) and prize draws (which
are not). The Gambling Act 2005 generally defines a lottery as requiring payment to
participate, an outcome determined wholly by chance, and the allocation of prizes.
Large society lotteries operate under a licence issued by the Gambling Commission.
There are limits on ticket sales and prizes and a minimum return to good causes. The
National Lottery, with its unique status, has its own separate legal framework under
the National Lottery etc. Act 1993.</p><p>Prize draws may resemble lotteries but not
meet the Gambling Act 2005 definition of a lottery because there is a free entry route
or because there is an element of skill involved. Where prize draws do not meet the
definition of a lottery, they are not considered gambling under the Gambling Act 2005
and the Gambling Commission has no regulatory responsibilities for them. It does however
monitor the boundary between them and society lotteries to ensure that products are
regulated when required by the Act.</p><p>We are currently undertaking a comprehensive
review of the Gambling Act 2005 to ensure it is fit for the digital age, and will
publish a white paper setting out our conclusions in the coming weeks. We are also
carefully considering the Select Committee’s recommendation and will respond in due
course.</p><p> </p>
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