Question to the Department for Digital, Culture, Media & Sport:

To ask the Secretary of State for Digital, Culture, Media and Sport, what assessment she has made of the adequacy of the amount of regulations governing prize draws compared to those regulating (a) charity lotteries and (b) the National Lottery.

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.

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.

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.