UKGC Warns Scratchcard Players not to Take Part in Promoting Illegal Lottery

The UK Gambling Commission issued a warning to players of online scratchcards to be wary of moneymaking schemes that could result to their participation in promoting illegal lottery.

The warning came after the UKGC received advice about plans of private operators to launch a system of offering digital scratchcards, purchasable online by paying monthly fees. Accordingly, the illegal lottery system also offers incentive of granting additional scratchcards to customers who will encourage others to purchase the online scratchcards.

The Director of Regulation of The Commission, Nick Tofiluk, warned that the law is very clear about not allowing any individual to promote a lottery for commercial or private gain. In light of such law, The Commission is advising anyone considering about getting involved in any scheme that entails purchasing or persuading others to buy the online scratchcards, for them to think very carefully as that would be tantamount to promoting illegal lottery to others. As prescribed by the Gambling Act 2005, those found in violation face imprisonment of up to 51 weeks and/or pay a fine in the amount determined by the court.

The UKGC made it clear that any individual or organisation looking to promote a lottery product in the UK, must be registered with the corresponding local authority or must have a gambling licence duly approved and issued by the UK Gambling Commission . If an organisation claims to have a UKGC-issue gambling licence, the public can check the veracity of the licence through the UKGC’s licence register.

Organisations claiming to be registered with the local licensing authority are those with single lottery ticket sales not aggregating more than £20,000 per year; or aggregating more than £250,000 per year for multiple lotteries. Customers can verify the licence of such organisations with the local licensng authority to which the organisation claims to have registered.

Based on the definition of lottery under the Act, scratchcard tickets are a form of lottery because payment is required in order to participate, to which one or more prizes are awarded by chance.

In a separate publication that provides comprehensive explanation about lottery operations and its promotion, the Commission explained that under Section 252 of the Gambling Act, acts of promoting lotteries include arranging for:

• the printing of lottery tickets;
• printing, publishing, and distributing promotional materials;
• advertising the lottery;
• inviting an individual to take part in the lottery;
• selling or supplying the illegal tickets;
• allowing the use of premises for the purpose of distributing prizes or any other purposes related to the administration of the lottery.

Those who will carry out such activities in behalf of a lottery organisation are considered in violation of the act, not unless they are employees, members, or officers of a licensed or registered lottery organisation; or are licensed to do so as External Lottery Managers.

Moreover, regardless of their official position or connection to a licensed lottery organisation, persons inviting or encouraging a minor to join a lottery commits an offence. This is because the minimum age allowed by law for a person to participate in lottery activities is 16 years. Licensed or registered lotteries therefore, are required by law to have written procedures and policies aimed at preventing participation of underage players.

The UKGC is urging anyone who believes that a person or organisation is promoting a lottery without the necessary authorisation to do so, to get in touch with The Commission via the regulator’s confidential intelligence line +44 121 230 6655.