Setting up an online competition business - Questions

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

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.

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.

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Thanks for your reply.

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

dave29 said:

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

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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.

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

DeeKie said:

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

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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.

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.

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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.

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.

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 ?

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

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!