scratch cards

There have been a number of concerns raised about scratchcard lotteries. Many attempt to circumvent the law by claiming that entry is free and that all entries will win a prize. In many cases, however, prizes have to be claimed by telephoning a premium rate telephone line, where the cost usually exceeds the value of the prize won.

The Gambling Commission regards these lotteries as misleading and, in some cases, unlawful. Where scratchcards are used as an advertising strategy to entice consumers into buying a product, then they may be unlawful since they have been issued for commercial gain.

Scratchcards issued with a newspaper or magazine may not be construed as being a selling factor but incidental to the purchase.

Only a court can define authoritatively whether a particular lottery is unlawful. It is for the police to investigate allegations of fraud or dishonesty.

Our strong recommendation to promoters is that they should seek independent legal advice on any scheme they intend to run.

The Independent Committee for the Supervision of Telephone Information Services (ICSTIS) supervises the conduct of premium rate telephone services. ICSTIS has a published Code of Practice governing the conduct of telephone competitions and their legality. More information is available on the ICSTIS website. ICSTIS does not, however, have any powers of prosecution.

Gambling Bill

Tessa Jowell announced on 12 June 2003 plans to ensure that there is a clear distinction between lotteries and prize competitions. For further information, please refer to our fact sheet on prize competitions.

Department for Culture Media and Sport

scratch cards