Betting watchdog warns house raffles must be for charity

GAMBLING authorities have become so concerned by the rise in popularity of house raffles that they have issued a warning to prevent people facing a year in jail.

The Gambling Commission has highlighted how those who flout strict betting rules to try to raise hundreds of thousand of pounds by offering their home as a prize could face 51 weeks in jail and a fine of up to £5,000.

Because lotteries, tombolas and raffles are based entirely on luck they can only be held to raise money for charity. The recent spate of so-called “house raffles” are only legal if they require an element of skill, often with a multiple choice question, and a way to enter for free. Even then, the complexities surrounding tax, stamp duty and legal disputes mean lawyers are drawing up complicated terms and conditions.

After Dunstan Low successfully raffled his £845,000 Lancashire mansion last week, he has been inundated with requests to help market a castle, an entire terrace of houses, luxury apartments and even a private island.

Mr Low is just one of a number of entrepreneurs hoping to set up an online company to help people market their home for a draw and avoid the legal pitfalls.

James Oakes, director at Zeal Investments which specialises in online lottery businesses, said he is considering ploughing money into a “real estate raf- fles” company. “There’s certainly a problem where so many people can’t get on the housing ladder,” he said.

But Sarah Gardner, the Gambling Commission’s executive director, said: “What might seem like a competition could be a lottery in law, and may mean you are operating an illegal lottery.”

Lucian Cook, head of residential research at Savills, said: “We would consider these raffles to be the last option. People will continue to rely on the normal routes to market.”