Types of lottery business and models of lottery in South Africa

What is Lottery?

A tool for raising cash, by trading varied sets of numbers, and distributing rewards to the bearer for the set of number drawn at random. It is a game whose victory or failure is lead by probability.

Essential Ingredients of Lottery are:

Ingredients of lottery

Grounds for starting a Lottery are either of the two “F”:

Factors of lottery

Lottery is a business of Chance & Probability.If one wants to experiment with their fortune, one of the most interesting platforms to do so is lottery. It does not only pool in money to award the winner, but also acts as a support for the social causes around.

So, lottery is a game to be enjoyed and to be made enjoyable.

Usually, starting a lottery is not perceived as a difficult task. There exists various models and one just needs to look at the one which suits their needs best and go ahead with it.
“Variety creates choices, choices create enthusiasm and finally enthusiasm creates greater involvement.”

Models of lottery

    • Societal lottery can be conducted by any group, institution, corporation or association of person and any separate section of any such entities.
    • It is used to boost or enhance the funds for various Non-Profit organizations.
    • Societal lottery is categorized into three types:
      1. Small Societal Lotteries
        Has a maximum limit for the tickets that can be sold and can function without a Gambling Commission License.
      2. Large Societal Lotteries
        Has a minimum limit for the tickets to be sold and necessarily needs a license to function.
      3. Private Societal Lotteries

        Only a member can publicize private lotteries, and market the lottery only to members of the same society and those who are present at the site.Members of any Club or Group can play this lottery, as long as it is not related to the Government in any form.

    • Such lotteries are just for pleasure and can only be conducted and played by co-workers at a certain workplace.
    • All the earnings should be utilized for rewards or expenditures done to organize the lottery.
    • No license or registration is required to conduct Work Lottery, except when the workplace does not allow such activities without regsitering, then registration is required.
    • No profit should be made out of this type of lottery. All the money should be awarded to the respective winners.
    • The campaigner of the lottery must be an inhabitant and lottery tickets can be sold only to the other residents of the same habitat.
    • Such a lottery does not require any permission to function.
    • No profit should be made out of this type of lottery. All the money should be awarded to the respective winners.
    • This lottery can only be run by a particular venture at its own site, just for its own consumers.
    • There has to be a limit for the prize that will be awarded.
    • No licensing is required to run Customer Lottery.
    • No promotions can be generated or publicized.
    • The tickets provided to customers should be non-transferable.
    • No roll-overs of prizes are permitted in Customer Lottery.
    • Such a lottery can be conducted during some specific event. Lottery tickets must be sold while the event is on and the results should be declared during the event.
    • Does not require any licensing or registration to function.
    • No rollover of prizes should take place.
    • Can be enjoyed by any age group.
    • Conducted by local authorities of about a place.
    • To function, an operating license is necessary.
    • The earning can be used for any purpose related to incurring the expenditures.
    • Usually, the purpose of the local authority lottery is to raise funds or revenue.

“Teaching helps to memorize, but involvement supports learning and generates a feeling of belongingness.”

This is how the Digital world has transformed the Lottery Industry. The buzz being:

Online Lottery Business

Online Lottery has created a platform, that has made gaming accessible and more exciting.
It is a platform which enhances the system productivity by enhancing the reliability factor and creating a streamlined system.

Yes, the magic of technology, different features, but still connected.

“A good example is always better than a good percept.”


Lottery Models that operate in South Africa:

Lottery types in south africa

    • Regulated by the Lotteries Act.
    • Self-regulated
    • Any written intimations are not allowed to be displayed, except for the lottery ticket and the premises lottery is being held at.
    • The maximum number of lotteries that can be run in a year are 12.
    • No administrative fee or expense share would be deducted from the lottery earnings.
    • The price of a single ticket would range from R10 to R10,000.
    • The gross value of the prizes must not exceed R10,000.
    • The promoter or initiator of the lottery should be an authorized member of the private Organization that is conducting the lottery.
    • Regulated by the Lotteries Act.
    • Basically it is self-regulated, but needs to observe certain rules to stay within the legal boundary:
    • All proceeds must be utilized for the benefit of the public welfare.
    • None of the prizes should be monetary and the complete value of the prizes should not exceed R5000.
    • Pricing for the tickets should range between R10 to R10,000.
    • These are lotteries conducted to uplift reserves for various non-profit ventures.
    • Regulated by the Lotteries Act
    • Society lottery must be organized completely within South Africa.
    • Organizations gaining from the lottery should in no way be related to gambling, betting and lotteries.
    • Entire proceedings after the deduction of expenditures should be consumed for charitable purposes, promotion of cultural and sports activities etc.
    • Society lottery should be compulsorily be licensed by the NLB (National Lotteries Board).
    • No more than 6 lotteries can be organized in a year on behalf of a particular society.
    • Administered by the Consumer Protection Act.
    • Basic rules laid are:
      1. Ban on misleading communication.
      2. Prohibition of payment to participate.
      3. Restriction on prize winners.
      4. Responsibility to publish rules and other details.
      5. Rights of participants.

“LOTTERY may seem a small word, but it has a lot of opportunities attached to it. Want to start one yourself, check what best suits you. Don’t just make it a business to fill currencies, but make it one that uses currency to generate well-being. There are many sides to a single subject, change the face of lottery to one that includes fun and faith. ”

** For more details visit : http://www.nlcsa.org.za/private-lotteries