At two sell-out “New Prize Promotion Law” workshops just held at Osborne Clarke’s London offices, we asked delegates to pit their wits and tell us whether some fictional “prize promotions” would be legal under the new Gambling Act laws due on 1 September 2007. How would you fare? See below for four of the case studies and our suggested legal analysis.
Prize Promotions: how to comply with the new law 21 and 27 June 2007
Workshop case studies
Rubric:
– Here are four prize promotion mechanics, all based on real life prize promotions operated recently in the UK.
– Please assume:
o the entry period in each case starts on 1 September 2007
o facilities for these are provided in the UK and they are advertised in the UK in non remote media
o that all are operated and advertised without any prior licence, notice, permit or registration having been obtained under the Gambling Act 2005
– Please indicate in each case whether the operation and advertising of the mechanic described would constitute offences under the Gambling Act 2005 and why
Mechanic # 1
Win the O.C. Sports Game!
Purchase any item at any branch of O.C. Sports and you could win a fantastic prize!
Just:
1. keep your till receipt,
2. go online to www.ocsports.com
3. register by providing
o your name and postal and email address
o the unique reference number on your till receipt
o answers to ten simple questions about your lifestyle and buying habits
And your name will go into the draw to be held on 30 September 2007. If your name is the first selected you will win £5,000.
Offences under the Gambling Act 2005? No.
Why? Provided all items purchased are at normal price and therefore do not reflect the opportunity to participate in the promotion, there will be no requirement to pay to participate, so this cannot be a lottery nor can it be betting, nor is this gaming as defined in the Act.
Mechanic #2
Win our "Who will win the British Grand Prix?" competition and one of ten limited edition signed prints!
You could win one of ten limited edition signed portraits of the original Osborne and Clarke!
No purchase necessary-just:
1. pick up an entry form from any Osborne Clarke office
2. say on the form who you believe will win the British Grand Prix
3. send in the form to the UK address shown in an envelope with a first or second class postage stamp
And if your prediction is correct and you are one of the first ten correct answers drawn at random from the postbag, you will win a signed portrait of the original Messrs Osborne and Clarke.
Offences under the Gambling Act 2005? No.
Why? There is no requirement to pay to participate. Any travelling expense that might be incurred travelling to an Osborne Clarke office will be at normal price so the cost will not reflect the opportunity to participate in the promotion. With no requirement to pay to participate there can be no lottery and no betting and the mechanic is unlikely to involve "gaming" as defined. There is nothing in the Gambling Act 2005 that draws free to enter prediction promotions within the ambit of gambling as defined.
Mechanic #3
Every purchase wins a prize!
Just order 2 or more books from the enclosed leaflets and add the code of your selected free gift to your order and you will receive the gift with your books.
Offences under the Gambling Act 2005? No.
Why? This is not a "prize" promotion at all as all are guaranteed to receive their chosen gift. The use of the word "prize" in this context is misleading and would fall foul of the CAP Code of Advertising, Sales Promotion and Direct Marketing.
Mechanic #4
Competition for Readers of "Cricketers' Monthly" magazine
Win a pair of tickets to the Osborne Clarke Test Series in our fantastic prize competition for readers of "Cricketers' Monthly" magazine.
All you have to do is:
1. find the entry form inserted in the July 2007 issue of "Cricketers' Monthly" magazine.
2. answer correctly the question "Which English County does Matthew Hoggard play for?"
3. complete the tie breaker by explaining in no more than 20 words why you think England will win the Osborne Clarke Test Series this winter
4. fill in your name and address on the back of the entry form
5. send the completed entry form by post to the address in Australia shown…
and if Shane Warne judges your explanation to put the most persuasive case for England winning the series, you win the tickets!
Offences under the Gambling Act 2005? Yes
Why? The need to pay postage to Australia involves incurring an expense which is higher than that of sending a letter by ordinary first or second class post and therefore introduces a "requirement to pay to participate." This renders the first process involved in participating an illegal lottery and the mechanic as a whole an illegal complex lottery. This is because the Mathew Hoggard question cannot reasonably be expected to prevent a significant proportion of Cricketers' Monthly readers from either entering or winning. As a result, progressing from the first stage relies wholly on chance.
© Osborne Clarke 2007
