Government Gazette

Vol. 413, No. 20610, 5 November 1999

Regulation Gazette, No. 6669

No. R. 1322

GOVERNMENT NOTICE

DEPARTMENT OF TRADE AND INDUSTRY

LOTTERIES ACT, 1997 (ACT No. 57 OF 1997)

REGULATIONS RELATING TO SOCIETY LOTTERIES

The Minister of Trade and Industry has, with the concurrence of the National Lotteries Board, under section 61 of the Lotteries Act, 1997 (Act No. 57 of 1997) made the regulations in the Schedule.

Definitions

SCHEDULE

  1. In these regulations, unless the context otherwise indicates, any word or expression defined in the Lotteries Act, 1997 (Act No. 57 of 1997), has that meaning and -

"manager" means a lottery manager contemplated in section 47 of the Act or any other person who is responsible for conducting the society lottery;

"the Act" means the Lotteries Act, 1997 (Act No. 57 of 1997).

Rules of society lotteries

  1. (1) No member or manager of a society or his or her spouse or life partner, immediate family member, business partner or associate shall participate in any society lottery conducted by or on behalf of that society.

(2) The finalist or finalists of any society lottery shall be chosen in the manner determined by the manager of that society or his or her delegate.

(3) Any decision byte manager or his or her delegate with regard to the determination of a finalist or finalists in a society lottery is final.

(4) Prizes, other than cash prizes, won in a society lottery may not be exchanged for cash amounts.

(5) The closing date of the society lottery and the date and place of the draw or draws shall be determined before commencing with that lottery.

(6) The finalist or finalists shall be notified telephonically of the outcome of the draw or draws.

(7) All prizes to be won in a society lottery shall be allocated.

(8) The manager of that society may prescribe such reasonable and lawful conditions as he or she considers necessary for participation in a society lottery.

Nature and requirements of scheme concerning society lotteries

  1. The scheme contemplated in section 38(c) of the Act shall specify -
  1. the address of the ounce or head office of the society;
  2. the registration number of the society, contemplated in section 41(2) of the Act conducting the society lottery or on whose behalf it is conducted;
  3. the manager responsible for conducting the society lottery;
  4. that the manager has provided the security referred to in regulation 5, if applicable;
  5. the purposes for which the society was established;
  6. the purpose for which the society lottery shall be conducted;
  7. that the society has adequate resources to conduct the society lottery in accordance with sound financial principles and methods;
  8. that the society shall keep proper accounting records in order to comply with section 46(3)(a) of the Act; the prizes to be won in the society lottery;
  9. the manner in which the finalist or finalists of the society lottery shall be determined; and
  10. the number and value of tickets to be sold in the society lottery.

Further information concerning registration of societies

  1. In addition to the particulars referred to in section 41(1) of the Act when applying for registration, a society shall -
  1. state the society's name;
  2. state the names and addresses of the manager and members of the society;
  3. state the name and registered address of the society's auditor and his or her or its address;
  4. furnish a written report pertaining to its financial state of affairs and business;
  5. state that the society's income and property are not distributable to its members or managers, except as reasonable compensate for services rendered;
  6. indicate whether the society's financial transactions are conducted by means of a banking account, and details thereof;
  7. state the date for the end of the society's financial year;
  8. indicate whether it is a body corporate and has an identity and existence distinct from its members or managers;
  9. indicate whether provision has been made for the society's continued existence notwithstanding changes in the composition of its membership or management;
  10. state whether the members or managers have any rights in the property or other assets of the society solely by virtue of their being members or managers;
  11. specify the powers of the society;
  12. specify the organisational structures and mechanisms for its governance;
  13. set out the rules for convening and conducting meetings, including quorums required for and the minutes to be kept at for those meetings;
  14. indicate the manner in which decisions are to be made;
  15. set out the procedure for changing its constitution;
  16. set out the procedure by which the society may be wound up or dissolved;
  17. indicate whether any asset remaining after all its liabilities have been met, when it is being wound up or dissolved, must be transferred to another society having similar objectives; and
  18. state whether the society has been registered previously in terms of the Act and whether application for such registration was refused or whether such registration has been suspended or revoked or has expired.

Provision of security by lottery manager responsible for conducting the society lottery

  1. If a society lottery is to be conducted by a lottery manager contemplated in section 47 of the Act, that lottery manager shall provide security to the board in an amount which shall be not less than 80 per cent of the total value of the prizes to be allocated.

Persons and categories of persons to whom and by whom tickets in society lottery may be sold

  1. (1) No person under the age of 18 years may buy, sell or in any other way obtain or dispose of a ticket for taking part in a society lottery.

(2) No person may -

  1. sell, buy or in any other way obtain a ticket for taking part in a society lottery from a person under the age of 18 years; or
  2. dispose such ticket to such person.

(3) No person who -

  1. is an unrehabilitated insolvent;
  2. is under legal disability;
  3. is a juristic person;
  4. has been removed from an ounce trust on account of misconduct; or
  5. has at any time been convicted of an offense under the National Gambling Act, 1996 (Act No. 33 of 1996), or under the Act, may in any way participate in a society lottery.

(4) Any ticket utilised for participation in a society lottery in contravention of subregulations (1) or (3) e void.

Frequency of society lotteries

  1. (1) No more than six society lotteries may be conducted by or on behalf of a society in any calendar year.

(2) A minimum period of 30 days shall elapse between the dates of any two society lotteries conducted by or on behalf of the same society.

Value of tickets and prizes

  1. (1) No ticket to be sold in respect of a society lottery shall be sold at a price exceeding R5.

(2) The total value of the prizes in a society lottery shall, subject to subregulation (3), not exceed 50 per cent of the proceeds of that lottery.

(3) The total value of the tickets sold in all society lotteries conducted in any year by or on behalf of the same society shall not exceed R1 000 000.

Circumstances in which tickets for society lotteries may be sold and persons may be invited to purchase tickets

  1. Tickets for society lotteries may be sold and persons may be invited to purchase such tickets only for -
  1. the promotion of the society conducting the society lottery or on whose behalf it is conducted;
  2. the obtaining of funds for a beneficiary of the lottery referred to in section 53(3)(a) of the Act; or
  3. other purposes which are not for private gain or commercial undertaking and approved by the board.

Information on reverse side of ticket

  1. The reverse side of every ticket distributed or sold, shall specify -
  1. the registration number of the society, contemplated in section 41 of the Act conducting the society lottery or on whose behalf it is conducted;
  2. the prizes to be won in the society lottery;
  3. the closing date of the society lottery and the date and place of the draw or draws; and
  4. a reference to where the rules referred to in regulation 2 may be obtained.

Advertisement of societies lotteries

  1. (1) A society lottery may be advertised for the area referred to in regulation 14 only through -
  1. the postal services;
  2. newspapers in circulation in such area;
  3. the distribution of pamphlets in such area;
  4. radio stations not broadcasting nationally.

(2) An advertisement contemplated in subregulation (1 ) shall state -

  1. the purpose of the lottery;
  2. in the case of a society lottery contemplated in regulation 9(b), the beneficiary of the lottery;
  3. the price of the tickets;
  4. where the tickets will be sold;
  5. the prizes to be won;
  6. the closing date for participation in the lottery; and
  7. when the draw will take place.

Use of postal services

  1. A person who has won any prize in a society lottery shall within seven days of the draw be notified thereof by registered mail.

Prescribed areas

  1. Tickets for a society lottery shall only be advertised, marketed, promoted or sold within the province or magisterial district or districts determined by the board.

Permitted expenses in respect of society lotteries

  1. (1) Subject to subregulation (2), expenses in a society lottery may be incurred only in respect of the following matters:
  1. costs in respect of printing and distribution of tickets;
  2. costs in respect of advertising of the lottery;
  3. actual expenses incurred by the manager or other members of the society
  4. in connection with the lottery;
  5. actual expenses incurred in connection with the awarding of the prize; and
  6. any other expenses strictly necessary for the proper conduct of the lottery.

(2) If the total proceeds of a society lottery -

  1. are less than R1 000 000, the expenses referred to in subregulation may not exceed 10 percent of the proceeds of that society lottery; or
  2. exceed R1 000 000, such expenses may not exceed 5 percent of the proceeds of that society lottery.

Commencement

  1. These regulations shall come into operation on [day] [month] 1999.