# Setting up an online competition business - Questions



## dave29 (11 Jun 2020)

Hi,

Three friends and I are looking to set up an online competition site, where customers buy tickets for different items and are entered into the competition.

From reading, this is classed as a lottery of sorts and therefore we'd need a license. 

Does anyone know what license is needed or where to apply for one?

Any help would be great. 

NB: I know we need to speak to a solicitor, but we'd like to find out as much as we can before doing so. - thanks


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## Leo (12 Jun 2020)

This is governed by the Gaming and Lotteries Act. The rules applicable will vary on the nature of the venture (raffle/lottery Vs game of skill). The typical raffle/lottery license won't do it as the organisers are not allowed to profit personally from those.


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## dave29 (15 Jun 2020)

Leo said:


> This is governed by the Gaming and Lotteries Act. The rules applicable will vary on the nature of the venture (raffle/lottery Vs game of skill). The typical raffle/lottery license won't do it as the organisers are not allowed to profit personally from those.


Thanks for your reply.

We will have a question before you can enter the competition- If we have this, do we need a license ?


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## Leo (15 Jun 2020)

dave29 said:


> We will have a question before you can enter the competition- If we have this, do we need a license ?



If there's an element of chance (multiple correct entries to a simple question for example), then if you're looking to charge, you're looking at a gaming license.


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## DeeKie (15 Jun 2020)

Three tests for a lottery. Paid entry. Game of chance. Prize. Fail one to avoid needing a licence.


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## dave29 (15 Jun 2020)

DeeKie said:


> Three tests for a lottery. Paid entry. Game of chance. Prize. Fail one to avoid needing a licence.



Thanks for your reply.

Sorry I don't understand your reply.

Can you explain what you mean 

We will have the following 
1) Question to be answered correctly to be in the competition
2) Paid entry 
3) A prize - prizes will change all the time.


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## Leo (16 Jun 2020)

dave29 said:


> We will have the following
> 1) Question to be answered correctly to be in the competition
> 2) Paid entry
> 3) A prize - prizes will change all the time.



You fail 2 of the 3 tests that must pass in order to avoid requiring a license. There would be a lot more companies doing what you propose if it were possible without a license.


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## dave29 (16 Jun 2020)

So would you say somewhere like .jdcompetitions.ie is doing this without a license ? - I see nothing on their site stating they have a license. 

Which license would you need to get ? 

What would what i'm trying to do be classed as ? 

I thought having the question made it a game of skill not chance. 

thanks for your reply.


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## Jeremiasapaz (1 Nov 2020)

dave29 said:


> So would you say somewhere like .jdcompetitions.ie is doing this without a license ? - I see nothing on their site stating they have a license.
> 
> Which license would you need to get ?
> 
> ...



Did you find an answer? Do you need a license?


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## CQuinn (2 May 2021)

Hi Dave, Did you ever get in contact with a solicitor about this in the end? Im in a similar situation at the moment and have been looking into it a bit. My limited understanding of it is that the final result will be a gaming licence is required. The Competition myself and some friends run are actually very similar to that of fantasy sports but breaking it down it would be classed as a competition that requires a large element of skill to compete with a paid entry and currently 100 percent of the entries go to the winner(s). But as we progress commission will be something we look at. I understand that a lottery licence would require a Min. of 25% go to a charitable or Philanthropic source with max 75% allocated to the winner and a Max of 25% taken for competition costs and expenses. But unfortunately haven't been able to answer the main question here. So any info you feel like passing on would be of great help!


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