The national Lotteries Committee has issued a stringent reminder to both corporations and private individuals that all raffle activities must be formally registered in compliance with the Lotteries Control Act, extending to seasonal holiday promotions and Christmas giveaways. This regulatory enforcement aims to bolster consumer protection mechanisms and ensure operational transparency within promotional schemes.
According to the latest advisory, raffles featuring prizes valued under five hundred dollars will be exempt from licensing fees, though mandatory registration remains compulsory. For higher-value prizes exceeding this threshold, organizers must pay a five percent tax calculated exclusively on the prize’s market value, irrespective of ticket sales volume.
Lewin Samuels, Secretary of the Lotteries Committee, provided explicit clarification regarding the policy rationale. “This framework is designed for entities seeking to spread Christmas cheer while maintaining legal compliance,” Samuels stated. He emphasized the critical consumer protection aspect, noting recurring instances where winners couldn’t claim unregistered raffle prizes due to absent regulatory oversight.
Samuels addressed common objections regarding registration fees: “While organizers perceive raffles as charitable gestures, participants typically must purchase goods or services for eligibility. The nominal fee structure—merely five percent of the prize value—is minimal compared to potential revenue from ticket sales.”
The Committee has specifically adapted regulations for small-scale holiday raffles, such as those offering turkeys or beverages tied to boledo number drawings. While maintaining registration requirements for all activities, the fee waiver for sub-$500 prizes aims to eliminate financial burdens while preserving consumer safeguards.