The 2005 Act only makes a lottery illegal if winning depends on ‘chance’. Thus, there must be a question that requires some skill to answer. Strictly speaking, winning will be regarded as being ‘by chance’ if the question would (a) not prevent a significant proportion of entrants from getting the right answer and (b) not deter a significant proportion of them from entering. But, in practice, it is extremely difficult to give advice as to what is a sufficiently difficult skill test. As a Law Society Practice Note has recently made clear, conveyancers should only become involved in house competitions with the approval of senior managers, and they should seek advice from those who are experts in gambling law. In any event, do bear in mind that even if the scheme complies with the Gambling Act, it could well be a vehicle for fraud or money laundering. Thus, take care. 



Having said that, it could possibly be argued that the 2005 Act does not apply when the prize is a house. This is because s14 defines a prize as including ‘any money, articles or services’ and it is difficult to see how that could be interpreted as applying to real property. In practical terms, however, that really is an argument of last resort and the prudent will take care before being involved with such house competitions. For more on why the Act may not apply to house competitions see [2008] SJ 18 November 10. © Practical Lawyer