Selling a 5K car on a raffle?

briniuk

Instead of selling my car the conventional way Id like to sell it on a raffle through facebook or other media, does anyone have any legalities regarding this?

lincroft1710

How many people are going to want to buy a raffle ticket for a secondhand car worth only £5K??

briniuk

Well ive seen a lot of variances, some people sell a £1k watch and £5 per ticket or some sell sports cars, id find a suitable amount of money to charge within a certain time ie a few months, if ive not got to the amount then ill just hand over a cash prize.

mjm3346

Lotteries (which includes raffles, sweepstakes and some competitions)  in Great Britain can only be promoted for charities and other good causes. They cannot be promoted for private or commercial gain. 

No doubt there is plenty of info on the Gambling Commission website (if it's for gain then offering a free entry route is generally a requirement to avoid the need for some of the regulations because that can mean it doesn't get counted as a lottery - that's why ITV etc offer free postal entry)

https://www.gamblingcommission.gov.uk/for-the-public/Fundraising-and-promotions/Advertising-and-promoting.aspx

from one of the sites that offer watches cash etc

To be eligible to enter the Competition for free, you MUST have an active User account registered with us first. Thereafter send your: Full name, Address, DOB, Email address, contact phone number (including area code if providing a landline number). These details must match the details we hold on your User account to enable us to apply the entry.

Grumpy_chap

There have been some people who try to sell their house that way - many reports on line of it all going wrong.  I have no idea of how the rules apply with regard to gambling.

Regardless, why on earth would I want to "invest" £1 to buy a ticket to win a second hand car worth £5k that is unlikely to be the car I want, and I then have the hassle of getting rid of it?  I also assume the car must be "knackered" otherwise, why wouldn't the owner sell via conventional routes.

I do not understand your objective on this. 

• It seems like a hard-work way of getting an unknown amount of money back for your car.  If you are willing to put the effort in, best sale value can be achieved through conventional private sale.  
• If you are not so fussed about 'maxing' the return, a far easier sale can be had using online buyers.

briniuk

Grumpy_chap said:

There have been some people who try to sell their house that way - many reports on line of it all going wrong.  I have no idea of how the rules apply with regard to gambling.

Regardless, why on earth would I want to "invest" £1 to buy a ticket to win a second hand car worth £5k that is unlikely to be the car I want, and I then have the hassle of getting rid of it?  I also assume the car must be "knackered" otherwise, why wouldn't the owner sell via conventional routes.

I do not understand your objective on this. 

• It seems like a hard-work way of getting an unknown amount of money back for your car.  If you are willing to put the effort in, best sale value can be achieved through conventional private sale.  
• If you are not so fussed about 'maxing' the return, a far easier sale can be had using online buyers.

I sell cars from time to time anyway and dont mind sitting on one to test this routine if its possible, the major part here is if I offered you to pay £1 for a ticket and you won the 5k car im sure you wouldnt be too bothered about the hassle to sell as even if you sold for 4k you'd be making £3999 which to anyone is amazing unless your ultimately wealthy. The vehicles I have are very low mileage less than 20k so in very good condition and I would add a warranty too.

briniuk

mjm3346 said:

Lotteries (which includes raffles, sweepstakes and some competitions)  in Great Britain can only be promoted for charities and other good causes. They cannot be promoted for private or commercial gain. 

No doubt there is plenty of info on the Gambling Commission website (if it's for gain then offering a free entry route is generally a requirement to avoid the need for some of the regulations because that can mean it doesn't get counted as a lottery - that's why ITV etc offer free postal entry)

https://www.gamblingcommission.gov.uk/for-the-public/Fundraising-and-promotions/Advertising-and-promoting.aspx

from one of the sites that offer watches cash etc

To be eligible to enter the Competition for free, you MUST have an active User account registered with us first. Thereafter send your: Full name, Address, DOB, Email address, contact phone number (including area code if providing a landline number). These details must match the details we hold on your User account to enable us to apply the entry.

There is a lot of raffles on facebook would these then not comply with law? its usually just a person doing it without registering etc

lincroft1710

briniuk said:

mjm3346 said:

Lotteries (which includes raffles, sweepstakes and some competitions)  in Great Britain can only be promoted for charities and other good causes. They cannot be promoted for private or commercial gain. 

No doubt there is plenty of info on the Gambling Commission website (if it's for gain then offering a free entry route is generally a requirement to avoid the need for some of the regulations because that can mean it doesn't get counted as a lottery - that's why ITV etc offer free postal entry)

https://www.gamblingcommission.gov.uk/for-the-public/Fundraising-and-promotions/Advertising-and-promoting.aspx

from one of the sites that offer watches cash etc

To be eligible to enter the Competition for free, you MUST have an active User account registered with us first. Thereafter send your: Full name, Address, DOB, Email address, contact phone number (including area code if providing a landline number). These details must match the details we hold on your User account to enable us to apply the entry.

There is a lot of raffles on facebook would these then not comply with law? its usually just a person doing it without registering etc

Who knows? Some may be compliant some may not be. 

Does the Gambling Commission monitor FB? If so do they turn a blind eye to small ticket items?

My opinion remains that this is not the way to sell a car.

mjm3346

briniuk said:

mjm3346 said:

Lotteries (which includes raffles, sweepstakes and some competitions)  in Great Britain can only be promoted for charities and other good causes. They cannot be promoted for private or commercial gain. 

No doubt there is plenty of info on the Gambling Commission website (if it's for gain then offering a free entry route is generally a requirement to avoid the need for some of the regulations because that can mean it doesn't get counted as a lottery - that's why ITV etc offer free postal entry)

https://www.gamblingcommission.gov.uk/for-the-public/Fundraising-and-promotions/Advertising-and-promoting.aspx

from one of the sites that offer watches cash etc

To be eligible to enter the Competition for free, you MUST have an active User account registered with us first. Thereafter send your: Full name, Address, DOB, Email address, contact phone number (including area code if providing a landline number). These details must match the details we hold on your User account to enable us to apply the entry.

There is a lot of raffles on facebook would these then not comply with law? its usually just a person doing it without registering etc

Unless the raffles are set up so they do not count as a lottery they are almost certainly breaking the law - you cannot run a lottery for gain (inc raffles etc). A common (but not the only way) is to include a free entry route.   (selling raffle tickets and drawing a winner makes it a simple lottery) 

" Promoters should take legal advice before embarking on promotions with prizes, including competitions, prize draws, instant-win offers and premium promotions, to ensure that the mechanisms involved do not make them unlawful lotteries (see the Gambling Act 2005 for Great Britain and the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 (as amended) for Northern Ireland).

Promoters should comply with all other relevant legislation, including data protection legislation for which guidance is available from the Information Commissioner's Office."

Gambling Act 2005

Lottery

(1)For the purposes of this Act an arrangement is a lottery, irrespective of how it is described, if it satisfies one of the descriptions of lottery in subsections (2) and (3).

(2)An arrangement is a simple lottery if—

(a)persons are required to pay in order to participate in the arrangement,

(b)in the course of the arrangement one or more prizes are allocated to one or more members of a class, and

(c)the prizes are allocated by a process which relies wholly on chance.

(3)An arrangement is a complex lottery if—

(a)persons are required to pay in order to participate in the arrangement,

(b)in the course of the arrangement one or more prizes are allocated to one or more members of a class,

(c)the prizes are allocated by a series of processes, and

(d)the first of those processes relies wholly on chance.

(4)In this Act “prize” in relation to lotteries includes any money, articles or services—

(a)whether or not described as a prize, and

(b)whether or not consisting wholly or partly of money paid, or articles or services provided, by the members of the class among whom the prize is allocated.

(5)A process which requires persons to exercise skill or judgment or to display knowledge shall be treated for the purposes of this section as relying wholly on chance if—

(a)the requirement cannot reasonably be expected to prevent a significant proportion of persons who participate in the arrangement of which the process forms part from receiving a prize, and

(b)the requirement cannot reasonably be expected to prevent a significant proportion of persons who wish to participate in that arrangement from doing so.

(6)Schedule 2 makes further provision about when an arrangement is to be or not to be treated for the purposes of this section as requiring persons to pay.

JayD2020

Wouldn't this be similar to how you can win a sorts car at the airport? Here's an article I could find... 

(I can't post links yet but Google "thisismoney airport car giveaway" and you find an article called "do people win supercar giveaways")

From the article:
"As gambling laws dictate, any competition entered where a winner is drawn purely out of chance is illegal, so the process has to have an element of skill - in this case, placing a marker where you think a football was in a photograph before it was cleverly edited out."

JayD2020

That should read sports car, not sorts car 😁