# Private person - wants to raffle site.



## SDMXTWO (23 Aug 2021)

Seeing so many raffles by various clubs, charities etc for houses & cars. Can anyone do this? What are the implications for the 'raffle seller' as there is no charity involved. TiA.


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## Johnno75 (23 Aug 2021)

Strictly speaking, any raffle involving “chance” is regulated by the Gaming and Lotteries Acts. You apply to the local Gardai for a licence. However, these rules are observed more in the breach as I’m not sure the laws are even enforced. Running an illegal lottery can render you liable to prosecution.


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## SDMXTWO (23 Aug 2021)

Johnno75 said:


> Strictly speaking, any raffle involving “chance” is regulated by the Gaming and Lotteries Acts. You apply to the local Gardai for a licence. However, these rules are observed more in the breach as I’m not sure the laws are even enforced. Running an illegal lottery can render you liable to prosecution.


Thanks. Well I have no intention of running an illegal anything. I have a site which I want to raffle off and am looking to find guidance as to where to start etc. I will try looking for a licence.


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## ClubMan (23 Aug 2021)

[broken link removed]


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## RedOnion (23 Aug 2021)

Generally speaking when you see a house being raffled here by a private individual, it's actually on a UK site / platform, so it's done under UK law. 
Even at that, they aren't lotteries but 'prize competitions' and you have to answer a question to take part. They're doing this to get around specific legislation so they're not true 'raffles'.


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## Johnno75 (23 Aug 2021)

RedOnion said:


> Even at that, they aren't lotteries but 'prize competitions' and you have to answer a question to take part. They're doing this to get around specific legislation so they're not true 'raffles'.



This is indeed done to attempt to get around the law. Though whether it does in fact get around the law is another matter.

Such a question (eg. “name the capital of Ireland”) is introduced to such games so as to introduce an “element of skill” to the process, thus purporting to remove the “element of chance” that exists in lotteries.

However, whether posing such a question does in fact introduce any element of skill and thereby successfully circumvent the law is very much open to question. 

If 99.99% of people answer the question correctly and one name ends up being pulled from a hat, this reintroduces the element of chance and is therefore more likely to be deemed a lottery. That said, I’m unaware of any case law on the matter, such is the lack of prosecutions in the area.


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## PaddyBloggit (23 Aug 2021)

Hve a read of the Ts & Cs in the following (may help guide you):

https://www.kerrygaa.ie/winahouseinkerry/

[broken link removed]


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## RedOnion (23 Aug 2021)

PaddyBloggit said:


> Hve a read of the Ts & Cs in the following (may help guide you):
> 
> https://www.kerrygaa.ie/winahouseinkerry/
> 
> [broken link removed]


These are really good examples of genuine lotteries. Both were granted a licence, and details are included on the relevant websites.

If I've understood @SDMXTWO  correctly, they are asking about a private individual running a raffle, which is a different proposition.


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## RedOnion (23 Aug 2021)

Johnno75 said:


> This is indeed done to attempt to get around the law. Though whether it does in fact get around the law is another matter.


Indeed. There have been a number of these shut down in the UK for not meeting the law.

Another piece is if the raffle doesn't comply with Irish gambling laws, the prize would not be tax free to the winner!


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## Purple (31 Aug 2021)

RTE and Radio stations, which are businesses and not charities, can run 'prize competitions' and don't run into trouble. They have the same simple questions.


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## iamaspinner (31 Aug 2021)

And what happens when you sell the house? Are you liable for CGT or other tax here in Ireland?


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## SDMXTWO (1 Sep 2021)

Have come across this recently: https://raffall.com/faq/hosting


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## Peanuts20 (2 Sep 2021)

there was an article on this very thing in the Irish times at the weekend








						House raffles: When your home is literally just the ticket
					

Homes are increasingly being raffled as an alternative to sales or to raise specific funds




					www.irishtimes.com


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## SDMXTWO (3 Sep 2021)

Peanuts20 said:


> there was an article on this very thing in the Irish times at the weekend
> 
> 
> 
> ...


Yes I saw that and it seems a very good possibility to raffle my goods. This is a new concept to Ireland but as the site has a fair few Irish properties.


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## Purple (14 Sep 2021)

Are the proceeds from the raffle subject to income tax? I presume so.
The profit from the sale of the site would be subject to CGT. 

Big difference.


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## RedOnion (14 Sep 2021)

Purple said:


> Are the proceeds from the raffle subject to income tax?


The 'profit' would be subject to income tax. So if you sell more than the house is worth, you'd pay income tax on the difference.  So you've the really grey area of valuing a house that wasn't sold on the open market.

Anyone should definitely seek professional tax advice before going down this route.


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## anntionette (6 Oct 2021)

Would you still be subject to irish income tax on any  profit if you were non resident at the time of the sale? or subject to income tax in the country you are residing? 

I've 2 more years here in UAE so if i sold my property before my return rather then on return as planned ( so i can buy my forever home) I wonder would that be better idea financially?


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## anntionette (7 Oct 2021)

Just realised maybe the profit from any house sale might actually be considered Capital gains and subject to 33% tax.


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## RedOnion (14 Nov 2021)

RedOnion said:


> The 'profit' would be subject to income tax. So if you sell more than the house is worth, you'd pay income tax on the difference.  So you've the really grey area of valuing a house that wasn't sold on the open market.
> 
> Anyone should definitely seek professional tax advice before going down this route.


Proposed amendments to the Finance Bill will bring some clarity to the tax treatments. 

The treatment of non-cash prizes would be the same as cash prizes.

Where proceeds are in excess of value of PPR house if raffled,  the PPR exemption would be restricted to market value and excess charged as CGT.





__





						Minister Donohoe welcomes Government Amendments to Finance Bill 2021
					






					www.gov.ie


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## dereko1969 (15 Nov 2021)

The OP never specified the rationale for going with a raffle rather than a straight forward sale. Why?


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## Leo (15 Nov 2021)

dereko1969 said:


> The OP never specified the rationale for going with a raffle rather than a straight forward sale. Why?


An individual would likely only be motivated by getting a better price. That or offloading a problem property. There's a lot of work require to push these raffles and sell enough tickets, so no one's doing it for the craic.


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## SDMXTWO (2 Mar 2022)

dereko1969 said:


> The OP never specified the rationale for going with a raffle rather than a straight forward sale. Why?


Well there is a good possibility of getting a better price + a contribution to a charity. It may not be the norm yet but why not.


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