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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 9335
Experience:  I have been practising for 30 years.
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I want to make bath bombs. 1 in 3 will have e-gift cards

Resolved Question:

I want to make bath bombs. 1 in 3 will have e-gift cards worth up 100 pounds. would this be legal?
Submitted: 1 year ago.
Category: Law
Expert:  F E Smith replied 1 year ago.

Can you explain your concerns in more detail please?

Customer: replied 1 year ago.
Hello thanks for your response,I am worried there might be a law against this? This is for a new start up of mine.
1 in 3 bath bombs will have a e-gift card code, or jewellery worth 10 to 100 pounds inside them. would i be able to advertise the odds for receiving a gift in the bath bomb?
Expert:  F E Smith replied 1 year ago.

Are you selling these at a price which is above the normal price of an item like this?

If one in three has a large voucher inside it, how would you make a profit if you were not selling the items at the normal item price?

Can you please explain exactly how your business model is going to work? Thank you.

Customer: replied 1 year ago.
Products like this can vary greatly in price, but yes i will be selling this above the normal price. I am in the early stages of working this out. two options i am thinking about.
one product costs 13 pounds, ten pounds of this is non profit to me and is put towards the gift,
or
cost for 1 is 8 pounds, 5 of this for the the gift.
Expert:  F E Smith replied 1 year ago.

This will need to be registered as a lottery under the provisions of the Gaming Act. There is no skill involved, it’s purely a chance as to whether the person gets a voucher or not. There is nothing illegal about it provided you satisfy the licensing requirements.

If you speak to the licensing department at your local authority, and explain exactly how this works, they will let you know the correct procedure to follow. They are the guys that would enforce this so you would be well advised to engage with them at a very early stage.

Can I clarify anything for you?

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Best wishes

FES

F E Smith and 3 other Law Specialists are ready to help you
Customer: replied 1 year ago.
But it is not a lottery. It says you cant run a lottery for personal gain, does that mean I will be unable to do this?
Customer: replied 1 year ago.
If there was something in every product just varying in worth. would this still be classed as gambling?
Expert:  F E Smith replied 1 year ago.

You can still do it but the procedure is different.

If you are doing this on a commercial scale and it’s going to be your source of income, then it’s not a local authority licence that you need but you need to be registered with the gambling commission.

As it is, it is purely chance as to whether people win or not. There is no element of skill. People don’t have to be geniuses because the questions are usually relatively basic although not necessarily obvious.

Here is the Gambling Commission website.

http://www.gamblingcommission.gov.uk/Home.aspx

the grey area with what you are doing is the cost of what you are selling. If you were simply selling these items at the normal price and whether someone gets a prize is incidental to them then you don’t need a licence.

If however what you are doing is in effect selling a ticket (dressed up as something else) to potentially win this hundred quid voucher, then the people are actually betting because they are actually betting on which one of the items (the bath bomb) is going to be a winner. There is no skill involved it is purely chance.

It still gambling if whatever it is in each product has a different value in exactly the same way that people who bet on horses bet with different odds.