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 Offices across Bristol will be taking part in the Grand National sweepstakes this week hoping to boost staff moral but industry experts warn that the sweepstakes could be considered illegal gambling in accordance with the Gambling Act of 2005. In order to be exempt from the Gambling Act offices need to meet certain criteria and unless the sweepstakes are carefully organized there is a possibility that business could find themselves in a bit of hot water.
James Corlett, a commercial solicitor with law firm Kirwans, explained the situation saying, "Most staff will be allocated horses purely by chance, as this is the only ‘fair' way of doing it. This is likely, however, to fall into the definition of a ‘lottery' under the Gambling Act...Grand National sweepstakes may seem like a bit of harmless fun, but the reality is that unless they are carefully organized, there is a distinct possibility that a business could find itself in hot water."
The 2005 Gambling Act (which is available to view online at gamblingcommission.gov.uk) does provide a major loop hole for businesses wanting to host a sweepstakes however. The law states the following in regards to workplace lotteries, "These can only be run and played by colleagues at a particular place of work, but this type of lottery cannot make a profit so is unsuitable for fundraising. You can run a lottery for your employees at a single set of work premises without an operating license from the Gambling Commission, unless your workplace is subject to a gambling premises license. All of the proceeds from ticket sales must be spent on prizes or expenses."
So basically, as long as it's just you and your co-workers playing in the sweepstakes and all of the money collected is given out as prizes you should be in the clear. If however a business attempts to make a profit off of the sweepstakes they could be charged with illegal gambling.
As always, stay tuned to Casinofan for more news and updates.
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