Bank savings prize draws and NI gambling laws

Money_Grabber13579

An increasing number of banks seem to be offering access to regular prize draws, in top of the derisory interest they are currently paying.  All of these prize draws exclude savers in Northern Ireland due to our antiquated gambling laws. I, nor nobody here, is going to be able to change that.

However, it got me thinking about how NS&I are able to sell premium bonds to NI customers, if banks aren’t able to offer what seems to be a virtually identical product to NI savers. Anybody know the reason for this?

Zanderman

Possibly because NS&I are the Government's agency, and the banks are not?

donglemouse

newspaper article about the nationwide account https://www.belfasttelegraph.co.uk/business/northern-ireland/nationwide-account-with-a-prize-draw-cant-be-offered-in-northern-ireland-because-laws-wont-allow-it-38964853.html
says "they could not offer the account to Northern Ireland customers because the prize draw is intrinsically linked to the savings account"

so possibly premium bonds are not a "savings account" in the eyes of the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985? i don't know if that's a distinction but could be the answer?

wmb194

Money_Grabber13579 said:

An increasing number of banks seem to be offering access to regular prize draws, in top of the derisory interest they are currently paying.  All of these prize draws exclude savers in Northern Ireland due to our antiquated gambling laws. I, nor nobody here, is going to be able to change that.

However, it got me thinking about how NS&I are able to sell premium bonds to NI customers, if banks aren’t able to offer what seems to be a virtually identical product to NI savers. Anybody know the reason for this?

Premium Bonds have their own acts of parliament. The answer could be in those somewhere - they often have sections specific to Scotland, NI, Channel Islands etc. Premium Bonds could also have a different distinction as a debt instrument rather than a savings account i.e. they're issued by the Treasury in the same vein as gilts but it's just that the interest paid on them is paid differently to conventional government debt.
https://www.legislation.gov.uk/primary+secondary?title=Premium%20bonds

nbrewitt

It it sounds like a very antiquated law that needs an overhaul, I certainly agree with regulation of the gambling industry but it seems unfair that free banking prize draws are being drawn into this.

eskbanker

Deleted_User said:

nbrewitt said:

It it sounds like a very antiquated law that needs an overhaul, I certainly agree with regulation of the gambling industry but it seems unfair that free banking prize draws are being drawn into this.

A "free" banking prize draw looks like a lottery to me. Why should it be exempt?

Because the National Lottery is?

https://www.national-lottery.co.uk/life-changing/winner-millionaire-map

eskbanker

Deleted_User said:

eskbanker said:

Deleted_User said:

nbrewitt said:

It it sounds like a very antiquated law that needs an overhaul, I certainly agree with regulation of the gambling industry but it seems unfair that free banking prize draws are being drawn into this.

A "free" banking prize draw looks like a lottery to me. Why should it be exempt?

Because the National Lottery is?

https://www.national-lottery.co.uk/life-changing/winner-millionaire-map

I don't follow your point. The National Lottery is obviously a lottery; it's allowed becaue there was specific legislation to set it up. Some posters seem to think that a "free" banking prize draw is not really a lottery; I was disagreeing, and asking what about it makes it not a real lottery.

Your wording implied that if it's a lottery then it shouldn't be exempt, so I was simply pointing out that a well-known lottery clearly is exempt....