Gambling Commission issues advice on house competitions

Press release

Date: 15 May 2009

The Gambling Commission has issued further advice to people attempting to realise the value of their properties using a house competition scheme*, to emphasise that we do not advise on or approve individual house competition schemes. In summary:

The Commission does not in any circumstances ‘approve’ prize competitions which remain free of statutory control under the Gambling Act 2005.

Organisers considering running a house competition should read the Commission’s guidance on prize competitions and free draws and take independent legal advice before proceeding.

Organisers of house competitions are likely to attract regulatory intervention from the Commission.                   

A decision over prosecution in a case where an operator persists in the face of the Commission’s concern will be made with due regard to the public interest and in line with the Code for Crown Prosecutors.

The circumstances in every case are different and a decision over prosecution in one case will not necessarily set a precedent for others.

Organisers of house competitions may be liable for taxation and should contact HM Revenue and Customs before proceeding.

Ends

Notes to editors

  1. 1.  Advice note on prize competitions and free draws: house competitions - May 2009
  2. 2. * In this context a house competition refers to the attempted use of a prize competition by a homeowner to realise the value of their property.
  3. 3. The Gambling Commission (the Commission) regulates gambling in the public interest. It does so by keeping crime out of gambling, by ensuring that gambling is conducted fairly and openly, and by protecting children and vulnerable people from being harmed or exploited by gambling. The Commission also provides independent advice to government on gambling in Britain.
  4. 4. The Commission is responsible for licensing and regulating all gambling in Great Britain other than the National Lottery and spread betting, which are the responsibility of the National Lottery Commission and the Financial Services Authority (FSA) respectively.
  5. 5 The Commission does not comment on individual cases. This release is intended to ensure organisers are properly informed of the law, not to seek to ban the operation of such competitions.
  6. 6. The Commission expects to publish revised guidance on prize competitions and free draws following a public consultation this summer.

Further information

Further information is available from the Commission’s website at: www.gamblingcommission.gov.uk

John Travers on (0121) 230 6700, (07852) 124624 or communications@gamblingcommission.gov.uk