The Gambling Commission has responded to the high levels of publicity surrounding internet based competitions, where home owners have offered their property as a prize. Concerns have been raised where the promotion seems to amount to a raffle or lottery rather than a competition.

The guidance equally applies to other types of competition, even those that are promoted to raise funds for good causes. The Gambling Act is designed to regulate gambling (including raffles and lotteries) but not competitions, and the Gambling Commission polices the thin line between the two.

If a promoter attempts to disguise a lottery as a competition by asking a question with an obvious answer, the attempt will fail. The statutory test is of sufficient skill, judgment or knowledge to either:
· deter a significant proportion of potential entrants or
· to eliminate a significant proportion who do enter.

If the Gambling Commission considers that a scheme is an illegal lottery, then a criminal investigation is likely to commence. Of the fifty house competitions that have been brought to the Commission’s notice, one is already subject to such an investigation.