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Is it illegal to give a cash prize for a prize draw?

(3 Posts)
Innat Thu 28-Feb-13 18:31:28

I am offering an prize for completing a quiz at a school event and putting it in a box. The general concensus is that cash would be most appreciated by parents as a prize but are there any legal implications? There is no charge to enter (it is not a raffle).
Does anyone know?
Thank you

Whydobabiescry Thu 28-Feb-13 18:36:29

Seems innocent enough and anything that gets some response from agents is a good thing however I expect someone will inform you of some requirement for a licence. Ring the licensing officer at your local council who will be able to confirm if a licence is needed.

MrAnchovy Thu 28-Feb-13 22:05:27

If there is an element of skill involved it is not a "prize draw" it is a competition and no license is required (that is why you get those ludicrous questions with obvious answers on TV pay-per-minute phone-ins).

A license is only required for a "lottery" which as well as no element of skill also charges for entries: again this is why you see "no purchase required, to enter send a SAE to ..." on back-of-cereal-packet promotions which turns them into a "free draw".

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