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UKSolicitorJA
UKSolicitorJA, Solicitor
Category: Law
Satisfied Customers: 4312
Experience:  English solicitor with over 12 years experience
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I'm considering starting a business where people send in some

Resolved Question:

I’m considering starting a business where people send in some of their “junk” to us (i.e. used/old) DVD’s/CD’s/Videogames etc via normal post to our address. Once received, that person will then be automatically entered into numerous prize draws that we will run each month for prizes such as holidays, televisions, trips etc. The person will be automatically entered in each prize draw for a period of 12 months against other “players” in the draws. Monthly prizes will be viewable on our website so the players are aware what prize draws they’re being considered for. Prizes are yet to be determined, but the prize value and the number of prize draws will increase as more players enter and we receive more “junk”.
My questions concerns if this would be considered as gambling or a lottery and if such a business would require an appropriate licence here in the UK? I’m aware that payment for entry would make this a lottery, and hence require a license, but given this business does not take payment in terms of currency or valuables – but rather items that the prospective player is willing to give away (“junk”/unused/unwanted items) that we would then have to re-sell for profit - would a gaming or lottery license be required in this instance?
Submitted: 3 years ago.
Category: Law
Expert:  UKSolicitorJA replied 3 years ago.
Hello,
As participants are only entered into the prize draw if they send in something to you, it would be a lottery for which a lottery licence is required. To put simply, the participant is required to make a contribution 'in kind' to have a chance of winning a prize.
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