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Online Raffle - Legal Issues

Discussion in 'Legal' started by abcxyz, Jan 21, 2008.

  1. abcxyz

    abcxyz UKBF Regular Free Member

    Posts: 116 Likes: 6
    Not sure whether to post it here or on the Legal thread.

    I'm conducting an online raffle draw to attract new members to my community website. They don't need to pay anything, all they need to do is to answer a very simple question (who is the current President of the USA) once they've registered. They will receive a little amount of money once that particular user is picked.

    It's purely online, website based. I'm based here in the UK, are there any legal measure that I need to do. Bloggers (blog website owner) seems to do the same to attract readers.

    As i did not consult any solicitor and I've only just started. What should I take into consideration? (I've already announced my Promo)

    I'm not really selling anything, I'm hoping that I'll generate a little income from adverts in the future but at present I've only got Google Adsense which is quite negligible.


    Help is needed greatly.
  2. abcxyz

    abcxyz UKBF Regular Free Member

    Posts: 116 Likes: 6
    really need your help on this.
  3. Antonia @limeone.com

    Antonia @limeone.com UKBF Regular Free Member

    Posts: 1,765 Likes: 141
  4. .Spiralling.

    .Spiralling. UKBF Regular Free Member

    Posts: 1,016 Likes: 100
    Hi Antonia

    I've just read the pdf on competitions and was surprised by the sentence below, and wondered if you could elaborate a little? Are all prize draws illegal, and if not, what are the criteria for a legal one?

  5. Antonia @limeone.com

    Antonia @limeone.com UKBF Regular Free Member

    Posts: 1,765 Likes: 141
    The rules relating to competitions/prize draws are complex and so you would need to be specific about the sort of competition you intend to run and the rules you intend to use. We would then provide specific advice on your draw and how the Gambling Act 2005 applied as well as current case law. Not all are illegal but unless there is an element of skill involved running one without authority could be illegal and and offence.
  6. abcxyz

    abcxyz UKBF Regular Free Member

    Posts: 116 Likes: 6
    Appreciate your comment but the statement below remains unclear.

    I have a community website. And to encourage new members I have included this online competition where they can win some money.

    Is asking a questions such as "Who is the current Prime Minister of the UK?" considered an element of skill?

    Are we legally required to consultant lawyer/solicitor in running competition like this? It is purely online. And completely no purchasing required. As it is just a social networking site.

    I've already posted it in my website and obviously started. The answer they give is the skill I was expecting. All those users who had the correct answers will be drawn in June. Therefore the actual winner is by chance I would have thought. The amount I'm giving away is $250.
  7. Antonia @limeone.com

    Antonia @limeone.com UKBF Regular Free Member

    Posts: 1,765 Likes: 141
    This requires an element of skill, however low, your rules on offering a draw are equally important as is how and if they comply with the various regulations. No one is expected to consult a solicitor but running any competition carries with it legal risk and this can rebound on you, ignorance of the rules is not a defence.

    For that reason most organisations, not for profits included at some stage take legal advice on their particular circumstances or get themselves equipped with a good thorough working knowledge of the law in this area.

    Where there are specific questions ie does my draw comply with the law as I am running it now, you would need to take advice on your own circumstances. This forum is excellent for providing starting point guidance but it is not possible to provide detailed free advice to an anonymous posters on a specific query which carries high penalties.
  8. abcxyz

    abcxyz UKBF Regular Free Member

    Posts: 116 Likes: 6
    So although a solicitor is not a pre requisite, it is highly recommended.

    How much do you charge for this kind of advice?
  9. Antonia @limeone.com

    Antonia @limeone.com UKBF Regular Free Member

    Posts: 1,765 Likes: 141
    If you send me a PM or email with a link to your site we can discuss what is needed and take it from there.
  10. abcxyz

    abcxyz UKBF Regular Free Member

    Posts: 116 Likes: 6
    Hi Antonia,

    Just wondering if you have received my second email when you asked about some info. I've not received any confirmation from you.

    Many Thanks
  11. Antonia @limeone.com

    Antonia @limeone.com UKBF Regular Free Member

    Posts: 1,765 Likes: 141
    I have not received any emails this afternoon but have been with clients from 12 so anything sent after then will be waiting for me when I get in tomorrow I am sure :)