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Lotteries Act, 1997 (Act No. 57 of 1997)

Part II : Other Lotteries

Chapter 3 : Functions of board in respect of society lotteries

53. Rules of society lotteries

 

 

1) A society lottery shall be conducted in accordance with the rules prescribed by the Minister and set out in subsection (2).

 

2)
a) The person conducting the society lottery shall be a member of the society on whose behalf that society lottery is conducted or a lottery manager certified in terms of section 47 and shall be authorised in writing by the governing body of the society to act as the person conducting that society lottery.
b) Every ticket distributed or sold, shall specify the name and address of the person conducting the society lottery and the date of the lottery.
c) No ticket in a society lottery shall be sold at a price exceeding the prescribed amount.
d) The price of every ticket shall be the same, and the price of any ticket distributed or sold, shall be stated on the ticket.
e) No person shall be admitted to participate in a society lottery in respect of a ticket except after payment to the society or lottery manager of the whole price of the ticket, and no money received for or on account of a ticket or chance shall in any circumstances be returned.
f) No payment other than the price of a ticket shall be required of a person as a condition of his or her admission to participate in a society lottery.
g) The total value of the prizes in a society lottery shall not exceed the prescribed amount in value, which shall not exceed R1 000 000 per year per society.
h) The total value of the tickets sold in any one society lottery shall not exceed the prescribed amount.
i) The total value of the tickets sold in all society lotteries conducted in any year on behalf of the same society shall not exceed the prescribed amount.
j) The amount appropriated for the provision of prizes shall not exceed 50 per cent of the proceeds of the lottery.
k) No chance or opportunity to take part in a society lottery shall be sold other than by way of a ticket.
l) Every ticket shall on its reverse side contain the information prescribed by the Minister.
m)
i) The amount appropriated on account of expenses, excluding prizes, shall not exceed whichever is the lesser of-
aa) the expenses actually and necessarily incurred; or
bb) whichever of the amounts specified in subparagraph (ii) applies.
ii) The amounts referred to in subparagraph (i)(bb) are-
aa) where the proceeds of the lottery do not exceed the prescribed amount, such percentage as may be prescribed by the Minister; or
bb) where the proceeds of the lottery exceed the prescribed amount, such percentage as may be prescribed by the Minister.
iii) For the purposes of subparagraph (i), the amount of any expenses that are met-
aa) by the society on whose behalf the lottery is conducted; or
bb) by any beneficiary of the lottery,

shall be deemed to have been appropriated on account of expenses from the proceeds of the lottery.

iv) The amount of the proceeds of a society lottery appropriated for the provision of prizes and the amount of those proceeds appropriated on account of expenses, excluding prizes, shall not in aggregate exceed the prescribed percentage of the proceeds of the lottery.

 

3)
a) For the purposes of subsection (2)(m)(iii)(bb), "beneficiary of the lottery" means a person or body, other than the society on whose behalf the lottery is conducted, to whom or for whose benefit any of the proceeds of the lottery, other than amounts appropriated in respect of expenses or prizes, are lawfully paid or applied.
b) For the purposes of this section, unless the context indicates otherwise, "year" means a period of 12 months commencing on 1 January: Provided that if this Act comes into effect on a date other than 1 January-
i) the period commencing on such other date and ending on the last day of the next December, shall be deemed to be the first year for the purposes of subsection (2)(i); and
ii) in relation to the period mentioned in subparagraph (i) the reference to the prescribed amount in subsection (2)(i) shall be construed as a reference to a proportionately smaller amount.