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REPUBLIC OF SOUTH AFRICA
LOTTERIES ACT
REPUBLIEK VAN SUID-AFRIKA
WET OP LOTERYE
No , 1997

GENERAL EXPLANATORY NOTE:
[]Words in bold type in square brackets indicate omissions from
existing enactments.
Words underlined with a solid line indicate insertions in
existing enactments.
ACT
To regulate and prohibit lotteries and sports pools; to establish a National Lotteries
Board; consequentially to amend the Post Office Act, 1958, the Gambling Act, 1965,
and the Gambling Act, 1982 (Ciskei), and to repeal the State Lotteries Act, 1984
(Ciskei), and the Lotteries Decree, 1989 (Transkei); and to provide for matters
connected therewith.
B
E IT ENACTED by the Parliament of the Republic of South Africa, as
follows:Ð
De®nitions
1.In this Act, unless the context indicates otherwiseÐ
(i) “board” means the National Lotteries Board established by section 2; (xxv)
(ii) “broadcasting service” means broadcasting service as de®ned in section 1 of
the Broadcasting Act, 1976 (Act No. 73 of 1976); (xxix)
(iii) “charitable expenditure” means expenditure by any organisation or institu-
tion established for charitable, benevolent or philanthropic purposes, includ-
ing friendly societies, welfare organisations and conduit organisations or
trusts established in respect of any such organisation or institution; (xiv)
(iv) “chief executive officer” means the chief executive officer contemplated in
section 7(1)(a); (xi)
(v) “Constitution” means the Constitution of the Republic of South Africa, 1996
(Act No. 108 of 1996); (ix)
(vi) “date”, in relation to a lottery, means the date on which the winners of that
lottery are determined; (ii)
(vii) “Department” means the Department of the national sphere of government
for which the Minister is responsible; (iv)
(viii) “distribute”, in relation to documents or other objects, includes distribution to
persons or places within or outside the Republic; (v)
(ix) “distributing agency” means a person appointed by the Minister to distribute
money, but not any department in the national or a provincial sphere of
government; (vi)
(x) “fund” means the National Lottery Distribution Trust Fund established by
section 21; (vii)5
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(xi) “licensee” means the person to whom the licence for the National Lottery has
been issued in terms of section 13(1); (xv)
(xii) “lottery” includes any game, scheme, arrangement, system, plan, promo-
tional competition or device for distributing prizes by lot or chance and any
game, scheme, arrangement, system, plan, competition or device, which the
Minister may by notice in theGazettedeclare to be a lottery; (xvi)
(xiii) “Minister” means the Minister to whom the administration of this Act has
been assigned; (xvii)
(xiv) “National Lottery” means the lottery contemplated in Part I of this Act and
includes all the lotteries conducted under the licence for the National Lottery,
taken as a whole; (xviii)
(xv) “net proceeds of the National Lottery” means the sums that are payable to the
fund or the board in terms of section 14(2)(e), but not the sums which are paid
out for prizes of the National Lottery; (xix)
(xvi) “newspaper” includes a journal, magazine or other periodical publication;
(xiii)
(xvii) “participant”, in relation to a lottery other than a promotional competition
contemplated in section 54, means a person who is in possession of a valid
ticket in that lottery; (iii)
(xviii) “place” means any place, whether or not it is a public place, and includes any
premises, building, dwelling, ¯at, room, office, shop, structure, vehicle, vessel
or aircraft; (xx)
(xix) “political office-bearer” means a member of Parliament, a member of a
provincial legislature, a diplomatic representative of the Republic who is not
a member of the public service, a member of a house or council of traditional
leaders, a member of the Volkstaat Council, a member of a municipal council
and any official of a political party, alliance or movement; (xxi)
(xx) “prescribe” means prescribe by regulation, and “prescribed” has a corres-
ponding meaning; (xxxi)
(xxi) “private lottery” means a lottery in the Republic which is conducted in
accordance with section 37Ð
(a)for and by members of a social or sporting club which is not connected
with any form of gambling;
(b)for and by persons all of whom work on the same premises;
(c)for and by persons all of whom reside on the same premises;
(d)by persons each of whomÐ
(i) is one of the persons for whom the lottery is conducted; and
(ii) in the case of a lottery conducted for the members of a social or
sporting club, has been authorised in writing by the governing body
of the social or sporting club to conduct the lottery; (xxii)
(xxii) “prize” means the prize awarded to the winner of a lottery; (xxiv)
(xxiii) “promotional competition” means a lottery conducted for the purpose of
promoting the sale or use of any goods or services; (xxvi)
(xxiv) “society” includes any club, institution, organisation or association of
persons, and any separate branch or section of such a club, institution,
organisation or association; (xxx)
(xxv) “society lottery” means a lottery conducted by a society in accordance with
Chapter 2 of Part II; (viii)
(xxvi) “software” means a set of instructions ®xed or stored in any manner and
which, when used directly or indirectly in a computer, directs its operation to
bring about a result; (xxiii)
(xxvii) “sporting event” means any football, rugby, cricket, golf or tennis match, any
boxing, wrestling, shooting or swimming contest, any foot, cycle, motor, boat
or horse race, and any other lawful sporting contest, competition, tournament
or game usually attended by the public; (xxvii)
(xxviii) “sports pool” means any scheme, excluding any scheme or competition in
respect of horse racing which is authorised by the board, or which is
conducted in the same format and manner and under the same circumstances
as a scheme or competition in respect of horse racing that existed prior to 18
June 1997, under whichÐ4
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(a)any person is invited or undertakes to forecast the result of any series or
combination of sporting events in competition with other participants;
and
(b)a prize is to be awarded to the competitor who forecasts the said result
correctly or whose forecast is more nearly correct than the forecasts of
other competitors, or a number of prizes are to be awarded on the basis
aforesaid,
and for the purposes of this de®nition the forecast of a result includes not only
the forecast of the person, animal, thing or team that will be victorious or
otherwise, but also any forecast relating to the system of scoring employed in
the sporting event in question, or to the person who will be responsible for the
score; (xxviii)
(xxix) “subscription” means the payment, or delivery of any money, goods, article,
matter or thing, including any ticket, coupon or entry form, for the right to
compete in a lottery; (i)
(xxx) “this Act” includes regulations made under this Act; (x)
(xxxi) “ticket”, in relation to a lottery or sports pool, means any symbol, sign, token,
coupon, warrant, card, printed paper, document or list or any other means or
device which confers or purports to confer the right to take part in a lottery or
sports pool and which is issued by or on behalf of the lottery or sports pool in
question. (xii)
PA RT I
THE NATIONAL LOTTERY
CHAPTER 1
National Lotteries Board
Establishment of National Lotteries Board
2.There is hereby established a board to be known as the National Lotteries Board,
which shall be a juristic person.
Composition of board
3.(1) Subject to subsection (3), the Minister shall appoint the members of the board,
which shall consist ofÐ
(a)a chairperson, who shall be a person with applicable knowledge or experience
with regard to matters connected with the functions of the board;
(b)one member designated by the Minister; and
(c)not more than ®ve members who have proven business acumen or applicable
knowledge or experience with regard to matters connected with the functions
of the board, and of whom at least one should be a legal practitioner admitted
to practise in the Republic and at least one a chartered accountant in the
Republic.
(2) At least four members of the board shall be persons who are not in the service of
any sphere of government.
(3) The member contemplated in paragraph(a)of subsection (1) shall be appointed
only after the Minister has by notice in theGazetteand in not less than two newspapers
circulating in every province invited interested parties to nominate persons suitable for
appointment as chairperson and the relevant committee of the National Assembly has
made recommendations to the Minister in relation thereto after a transparent and open
process of considering persons so nominated, having due regard to the functions of the
board.
(4) A member of the board shall hold office for such period, not exceeding ®ve years,
as the Minister may determine at the time of his or her appointment, and shall be eligible
for reappointment at the end of his or her ®rst term of office.6
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(5) Subject to section 33 of the Constitution, the MinisterÐ
(a)may, as soon as he or she gains knowledge of any possible disquali®cation,
terminate the membership of any member of the board on the grounds of
serious misconduct or prolonged inability to perform the functions of a
member of the board;
(b)shall suspend the membership of any member of the board in the event of the
State instituting criminal proceedings in a court of law on a charge of theft,
fraud, forgery or uttering a forged document, perjury, an offence in terms of
the Corruption Act, 1992 (Act No. 94 of 1992), or any offence involving
dishonesty;
(c)shall terminate the membership of any member of the board in the event of
that memberÐ
(i) being found guilty in a court of law of contravening this Act or of theft,
fraud, forgery or uttering a forged document, perjury, an offence in terms
of the Corruption Act, 1992, or any offence involving dishonesty; or
(ii) materially failing to comply with subsection (7).
(6) The Minister shall, subject to subsection (3), ®ll a casual vacancy on the board by
the appointment of another person for the remainder of the period for which the person
in respect of whom the vacancy arose, had been appointed.
(7)(a)A person shall not be appointed or remain a member of the boardÐ
(i) unless he or she is a ®t and proper person for such membership;
(ii) if such person, whether personally or through his or her spouse or life partner,
immediate family member, business partner or associateÐ
(aa)has or obtains a direct or indirect ®nancial interest in any lottery or
gambling or associated activity, or if that person has had any such
interest during the period of three years immediately prior to the
envisaged date of appointment as member of the board; or
(bb)has or obtains any interest in any business or enterprise that may con¯ict
or interfere with the proper performance of his or her functions as a
member of the board or in any shareholder of the licensee or prospective
licensee; or
(iii) if such personÐ
(aa)is or becomes a political office-bearer;
(bb)is or becomes an unrehabilitated insolvent or commits an act of
insolvency;
(cc)has at any time been, or is, removed from an office of trust on account of
misconduct; or
(dd)has at any time been, or is, convicted, whether in the Republic or
elsewhere, of theft, fraud, forgery or uttering a forged document, perjury,
an offence in terms of the Corruption Act, 1992, or any offence involving
dishonesty.
(b)A person who has been nominated for appointment to the board and who has
accepted that nomination, whether tacitly or explicitly, shall, prior to his or her
appointment as a member, submit to the Minister a written statement in which he or she
declares whether or not he or she has any interest contemplated in paragraph(a)(ii).
(c)If any member during his or her term of office acquires or contemplates acquiring
an interest which could possibly be an interest contemplated in paragraph(a)(ii), he or
she shall forthwith in writing declare that fact to both the Minister and the board, which
at its following meeting shall consider whether such an interest constitutes or may
constitute a contravention of paragraph(a)(ii), and if it is considered not to be a
contravention, whether such acquisition or contemplated acquisition is likely to
compromise the impartiality of the board.
(d)The board shall forthwith in writing inform the Minister of the board’s decision or
recommendation contemplated in paragraph(c)if the Minister is not present at the
meeting when the matter is considered in accordance with that paragraph.
(e)The Minister shall, after consideration of the board’s decision or recommendation,
inform the member concerned if the acquisition or contemplated acquisition constitutes
an interest contemplated in paragraph(a)(ii) or is likely to compromise the impartiality8
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of the board, whereupon that member shall forthwith divest himself or herself of that
interest, failing which the Minister shall take action in terms of subsection (5).
(8) A member of the board or his or her spouse, life partner, immediate family
member, business partner or associate may not for a period of 12 months after the
termination of membership of the board take up employment or in any way receive any
bene®t from any person who is applying or has appliedÐ
(a)in terms of section 13, for the licence to conduct the National Lottery;
(b)in terms of section 55, for a licence to conduct a national sports pool;
(c)in terms of this Act, for any other authorisation, registration, certi®cation or
other bene®t or advantage; or
(d)in terms of any legislation pertaining to gambling, for a gambling licence,
unless the terms of such employment or the nature and extent of such bene®ts have been
disclosed to the Minister and he or she has authorised that employment or those bene®ts
or advantages.
(9) The provisions of subsection (8) do not prevent any criminal or civil proceedings
in a court of law.
(10) Any agreement in contravention of subsection (8) is null and voidab initio.
Meetings of board
4.(1) The ®rst meeting of the board shall be held on such a date and at such a time and
place as the Minister may determine, and all subsequent meetings shall be held on such
dates and at such times as the chairperson may determine after consultation with the
board.
(2) The proceedings at a meeting of the board shall, subject to this section, be
determined by the chairperson in consultation with the board, and any decision in this
regard shall be taken after due consideration of the principles of openness and
transparency.
(3) The quorum for a meeting of the board shall be the majority of the members of the
board.
(4) A decision of the board shall be taken by a majority of the votes of the members
present, and in the event of an equality of votes on any matter, the chairperson shall have
a casting vote in addition to his or her deliberative vote.
(5) The Minister and the chief executive officer of the board may attend any meeting
of the board or its executive committee, and they shall each have the right to speak at any
such meeting, but they do not have a right to vote.
(6) The Chairperson shall timeously notify the Minister of any meeting of the board
or its executive committee.
Executive committee of board
5.(1) The board may from time to time appoint an executive committee to perform the
functions and exercise the powers delegated to it by the board.
(2) An executive committee shall consist of such members of the board as the board
may designate.
(3) The board shall designate the chairperson of an executive committee.
(4)(a)An executive committee shall perform its functions in accordance with the
provisions of this Act and such directives of the board as are not in con¯ict with such
provisions.
(b)Any delegated function so performed shall be deemed to have been performed by
the board.
Remuneration and allowances of members of board
6.(1) Members of the board who are not in the service of the State may, in respect of
their services, be paid such remuneration and allowances as may be determined by the
Minister in consultation with the Minister of Finance.10
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(2) The remuneration and allowances of the persons referred to in subsection (1) may
differ according to the different offices held by them or the different functions performed
by them.
Staff of board
7.(1) The board shall in the performance of its functions under this Act, be assisted
byÐ
(a)a suitably quali®ed and experienced person as chief executive officer,
appointed by the board or seconded in terms of subsection (3) and solely
accountable to the board for the performance of all ®nancial, administrative
and clerical functions of the board and any duties which may be delegated to
him or her by the board in terms of subsection (4);
(b)such other persons, appointed by the board or seconded in terms of subsection
(3), as may be necessary to enable the board to perform its functions.
(2) The persons appointed by the board in terms of subsection (1), other than
seconded persons, shall receive such remuneration, allowances and other employment
bene®ts and shall be appointed on such terms and conditions and for such periods as the
board may determine in consultation with the Minister and the Minister of Finance.
(3) The board may, in the performance of the functions contemplated in subsection
(1)(a)and(b), at its request and after consultation with the Minister and the Public
Service Commission, be assisted by officers in the public service seconded to the service
of the board in terms of any law regulating such secondment.
(4) Any function of the board in terms of this Act may be delegated to the chief
executive officer, and any such delegation shall be in writing.
(5) Any person who is an employee of the Department and whose duties include any
matter relating to any lottery or any other person who at any time serves or has served
in any capacity as a member of staff of the board, or his or her spouse, life partner,
immediate family member or business partner or associate, may not during the time of
his or her service to the board or for a period of 12 months after the termination of such
service take up employment or in any way receive any bene®t from any person who is
applying or has appliedÐ
(a)in terms of section 13, for the licence to conduct the National Lottery;
(b)for a licence to conduct a national sports pool in terms of section 55;
(c)in terms of this Act, for any other authorisation, registration, certi®cation or
other bene®t or advantage; or
(d)in terms of any legislation pertaining to gambling, for a gambling licence,
unless the terms of such employment or the nature and extent of such bene®ts have been
disclosed to the board and the board has authorised that employment or those bene®ts or
advantages.
(6) The provisions of subsection (5) do not prevent any criminal or civil proceedings
in a court of law.
(7) Any agreement in contravention of subsection (5) is null and voidab initio.
Funds of board
8.(1) The funds of the board shall consist ofÐ
(a)the payments to the board in terms of section 34;
(b)application and licensing fees paid to the board in terms of section 14(3);
(c)other money lawfully paid to the board, excluding any prize money paid by
the licensee to the board; and
(d)money appropriated by Parliament.
(2) The board may, up to an amount approved from time to time by the Minister in
consultation with the Minister of Finance, raise short-term loans at any time, by way of
overdrawing its account with a bank or otherwise, to meet any casual de®cits that may
arise.12
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Finances
9.There shall be paid out of payments made to the board in terms of section 34 such
sums as are necessary to defray any expenses incurred by the board, including the
remuneration, allowances and other employment bene®ts of the chief executive officer
and members of the staff of the board.
Functions of board
10.The board shall, applying the principles of openness and transparency and in
addition to its other functions in terms of this ActÐ
(a)advise the Minister on the issuing of the licence to conduct the National
Lottery as contemplated in section 13(1) and on any matter contemplated in
section 14(2)(g);
(b)ensure thatÐ
(i) the National Lottery and sports pools are conducted with all due
propriety and strictly in accordance with the Constitution, this Act, all
other applicable law and the licence for the National Lottery together
with any agreement pertaining to that licence;
(ii) the interests of every participant in the National Lottery are adequately
protected; and
(iii) subject to subparagraphs (i) and (ii), the net proceeds of the National
Lottery are as large as possible;
(c)administer the fund and hold it in trust;
(d)monitor, regulate and police lotteries incidental to exempt entertainment,
private lotteries, society lotteries and any competition contemplated in section
54;
(e)advise the Minister on percentages of money to be allocated in terms of
section 26(3);
(f)advise the Minister on the efficacy of legislation pertaining to lotteries and
ancillary matters;
(g)advise the Minister on establishing and implementing a social responsibility
programme in respect of lotteries;
(h)administer and invest the money paid to the board in accordance with this Act
and the licence for the National Lottery;
(i)perform such additional duties in respect of lotteries as the Minister may
assign to the board;
(j)make such arrangements as may be speci®ed in the licence for the protection
of prize monies and sums for distribution; and
(k)advise the Minister on any matter relating to the National Lottery and other
lotteries or any other matter on which the Minister requires the advice of the
board.
Consultation by board
11 .The board may consult any person, organisation or institution with regard to any
matter deemed necessary by the board to enable the board to perform its functions
effectively.
Audit and annual report
12.(1) The board shallÐ
(a)keep proper books and records in relation to receipts and payments;
(b)prepare a report of all the activities of the board, including ®nancial
statements, in respect of each ®nancial year and the board’s regulatory
functions in respect of all lotteries and all matters in respect of which the
board rendered advice or made recommendations to the Minister in
accordance with paragraphs(e),(f)and(g)of section 10; and 14
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(c)annually within three months after the end of each ®nancial year, submit the
report and ®nancial statements referred to in paragraph(b)to Parliament, and
if Parliament is not then in session, on the ®rst day of the next session.
(2) In subsection (1) “®nancial year” meansÐ
(a)the period from the date on which the board is appointed for the ®rst time to
the last day of March in the following year; and
(b)each period of 12 months thereafter ending on the last day of March.
(3) The ®nancial statements shall comply with generally accepted accounting
principles and any other directions that may be given by the Minister or the Minister of
Finance, or may be provided for in statutory measures applicable to the board, as to the
information to be contained in such statements, the manner in which such information
is to be presented or the methods and principles according to which such statements are
to be prepared.
(4) The ®nancial statements of the board shall be audited by the Auditor-General.
(5) The report referred to in subsection (1) shall be laid upon the Table in Parliament
forthwith after it is submitted to the Minister, if Parliament is then in session, or, if
Parliament is not then in session, on the ®rst day of the commencement of the next
ensuing session of Parliament.
(6) The report referred to in subsection (1) shall include the recommendations of the
board with regard toÐ
(a)the percentages prescribed in terms of section 26(3); and
(b)any amendments to this Act or regulations issued under this Act in order to
improve the execution of the functions of the board.
CHAPTER 2
Licensing of National Lottery
Licence to conduct National Lottery
13.(1) The Minister may, after consultation with the board, issue one licence at one
time authorising a person to conduct the National Lottery, which for purposes of section
57 will constitute a lottery, in accordance with the provisions of this Act.
(2) Before a licence is granted under this sectionÐ
(a)the Minister shall by notice in theGazetteand in not less than two newspapers
circulating in every province invite interested parties to apply in writing for a
copy of a request for proposal or any other document which may be made
public, and the board shall require payment for any such documents;
(b)the Minister shall be satis®ed thatÐ
(i) the applicant for the licence contemplated in subsection (1) has sufficient
appropriate knowledge or experience to conduct the National Lottery, or
has unconstrained and continuous access thereto, and will be able to
conduct the National Lottery strictly in accordance with this Act, the
licence of the National Lottery and any agreement pertaining to the
licence;
(ii) the applicant has the necessary ®nancial and other resources to conduct
the National Lottery;
(iii) the applicant will for the duration of the licence show a clear and
continuous commitment to the social responsibility programme contem-
plated in section 10(g)and to the advancement, upliftment and economic
empowerment of persons or groups or categories of persons disadvan-
taged by unfair discrimination; and
(iv) no political party in the Republic or political office-bearer has any direct
®nancial interest in the applicant or a shareholder of the applicant.
(3) In considering whether to grant the licence, the Minister shall take into accountÐ
(a)whether any person who appears to the Minister to be likely to manage the
business or any part of the business of the National Lottery under the licence,
is a ®t and proper person to do so;16
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(b)whether any person for whose bene®t that business is likely to be conducted,
is a ®t and proper person to bene®t from it; and
(c)whether any person who is likely to manage the business or any part of the
business of the National Lottery under the licence or a sports pool, will do
soÐ
(i) with all due propriety and strictly in accordance with the Constitution,
this Act, all other applicable law and the licence for the National Lottery
together with any agreement pertaining to the licence;
(ii) so that the interests of every participant in the National Lottery and sports
pools are adequately protected; and
(iii) subject to subparagraphs (i) and (ii), so that the net proceeds of the
National Lottery and sports pools are as large as possible.
(4) A licence granted under this section shall include the conditions contemplated in
section 14.
(5) The licence contemplated in subsection (1) may allow the licensee to appoint
another person to conduct certain lotteries of the National Lottery on behalf of the
licensee only with the written approval of the Minister.
(6) In considering whether to grant the licence contemplated in subsection (1), the
Minister and the board shall not favour an applicant solely because the applicant or a
shareholder or partner of that applicant is an organ of the State.
Requirements and conditions of licence
14.(1) A licence granted in terms of section 13 shall be in writing, shall specify the
conditions attached to it and shall be granted for a minimum period of ®ve years or a
maximum period of eight years: Provided that the Minister may, after consultation with
the board, in a case where the licence has been granted for less than eight years, and at
least one year before the expiry of that licence, extend that licence for such further
period as would, together with the initial period for which that licence was granted, not
exceed eight years: Provided further that the licensee shall have no rights or legitimate
expectations in respect of an extension of the period of validity of the licence other than
the rights afforded by this subsection.
(2) The conditions contemplated in subsection (1) shall include such conditions as the
Minister shall determine, after consultation with the board, and shall in particular
include conditions requiring the licenseeÐ
(a)to obtain the consent of the board before doing anything speci®ed in the
licence;
(b)to refer speci®ed matters to the Minister or to the board, as the case may be,
for approval;
(c)to ensure that such requirements as the Minister or the board may from time
to time determine or approve in terms of the licence are complied with,
including the imposition of penalties in the event of the licensee not
complying with any provision of this Act or the licence;
(d)to provide the Minister and the board at times speci®ed by the Minister or the
board with such information as the Minister or the board may require;
(e)to make such arrangements as may be speci®ed in the licence for the payment
of such sums out of the proceeds of the National Lottery as may be so
speci®ed to the fund or to the board, as the case may be, at such times as may
be so speci®ed;
(f)to do such things in terms of the licence, including the transfer of property or
any rights, excluding intellectual property rights or proprietary software, as
the board may require, upon the expiration of the licence;
(g)to obtain the approval of the Minister for any lottery and the rules thereof
before that lottery is conducted under the licence for the National Lottery;
(h)to allow the board or anyone designated by it to enter any premises or facility
belonging to or under the control of the licensee or a member of the
management of the licensee, or premises to which the licensee has a right of
access, at any reasonable time, if such entry is necessary for the protection of
the integrity of the National Lottery, and toÐ18
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(i) examine or inspect any thing, machine, document or data captured in any
form, excluding proprietary software, found on or in the premises or
facility, and make copies of or make extracts from that thing, machine,
document or data;
(ii) seize, for the purpose of further examination or securing information,
any thing, machine, document or data, excluding proprietary software,
on or in such premises or facility which has a bearing on the conduct of
the National Lottery;
(iii) seal or otherwise secure any such premises, facility, thing or machine on
or in which any document or data which has a bearing on the conduct of
the National Lottery is stored or captured; and
(iv) take such steps as may be reasonably necessary to protect the integrity
and conduct of the National Lottery; and
(i)to secure a valid and enforceable undertaking in writing fromÐ
(i) the person controlling the licensee in any way whatsoever not to change
that control of the licensee for the duration of the licence without the
consent of the Minister;
(ii) the person controlling the licensee in any way whatsoever not to transfer,
cede or in any other way encumber the licence to another person; and
(iii) the licensee not to permit, require or compel any of its employees or
agents knowingly to sell a ticket, or to award or to pay any prize toÐ
(aa)a director of the licensee or a director of a holding or shareholder
company of the licensee, an employee, agent or consultant of the
licensee or a member, employee or agent of the board;
(bb)a person who prints or in any other way manufactures a ticket for the
National Lottery, or any of his, her or its directors or employees;
(cc)a person who supplies, operates, maintains or repairs any computers
or any other electronic device or system of any kind, or parts
thereof, or software for those computers or devices, in respect of the
National Lottery, or any of his, her or its directors or employees; or
(dd)a person who is responsible for the marketing and advertising in
respect of the National Lottery, or any of his, her or its directors or
employees, as the case may be.
(3) OnÐ
(a)requesting a copy of any document in terms of section 13(2)(a);
(b)applying for the licence to be issued in terms of section 13(1); or
(c)the granting of a licence under section 13,
the person requesting a copy of a document, the applicant or the licensee, as the case
may be, shall pay to the board the prescribed fee.
Variation of conditions of licence
15.(1) The Minister or the board may vary any condition in the licence granted under
section 13Ð
(a)to the extent provided for in the provisos to section 14(1); or
(b)other than a condition contemplated in paragraph(a),
only if the licensee consents to that variation, or if the licensee does not consent to that
variation, only ifÐ
(i) that variation is provided for in this Act or to the extent provided for in the
licence; and
(ii) the licensee has been given a reasonable opportunity to make representations
to the Minister or the board, as the case may be,
in respect of the intended variation.
(2) If the Minister or the board, after consideration of the licensee’s representations,
decides to vary a condition in the licence in accordance with that licence but without the
consent of the licensee, the Minister or the board, as the case may be, shall cause a notice
to be served on the licensee in which the licensee is informed of the variation and the
date on which that variation shall take effect, which date shall not be less than 21 days20
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after the date of service of such notice, unless the licensee agrees to a shorter period in
writing.
(3) The provisions of the licence to vary a condition in the licence under subsection
(1) may allow the Minister or the board to add a condition to the licence or to omit a
condition from the licence.
Enforcement of conditions of licence
16.(1) If the Minister or the board has reason to believeÐ
(a)that a person is likely to contravene a condition in the licence granted under
section 13;
(b)that a person has contravened such a condition and there is a reasonable
likelihood that the contravention will continue or be repeated; or
(c)that a person has contravened such a condition and that the contravention can
be remedied,
the Minister or the board, as the case may be, may apply to a High Court for an order
prohibiting the contravention or, as the case may be, requiring the licensee and any other
person who appears to the court to have been party to the contravention, to take such
steps as the court may direct.
(2) The liability of the licensee to pay any sum in terms of this Act or the licence or
agreement pertaining thereto shall not be affected by the licence ceasing to be valid for
any reason and such sum may not be set off by the licensee against any amount due and
payable.
Grounds for revocation of licence
17.The licence granted under section 13 may be revoked by the Minister or the board
on the following grounds:
(a)If the licensee is no longer a ®t and proper person to conduct the National
Lottery, whether because of the commission of an act of insolvency,
liquidation or for any other valid reason;
(b)if a condition contained in the licence has been materially contravened;
(c)if any information given by the licensee, any person who in any way controls
the licensee or an agent or representative of the licensee to the boardÐ
(i) in or in connection with the application for the licence;
(ii) in accordance with a condition in the licence; or
(iii) in making representations in terms of section 18(1), in respect of
®nancial matters regarding the National Lottery or in respect of any
aspect of the management of the National Lottery,
is materially false;
(d)if any person who is managing the business or any part of the business of the
licensee or who is a supplier of goods or services to the licensee is not a ®t and
proper person to do so, whether because of the commission of an act of
insolvency, insolvency, liquidation, incarceration in a prison or other
institution or for any other relevant reason, unless the licensee immediately
takes steps to effectively dissociate himself, herself or itself from that person;
(e)if any person for whose bene®t the licence has been acquired or who is a
holding company of the licensee or who in any other way controls the
licensee, is not a ®t and proper person to bene®t from it, whether because of
insolvency, liquidation, incarceration in a prison or other institution or for any
other relevant reason;
(f)if the licensee has failed to take adequate steps to prevent the commission of
fraud by his, her or its employees, agents, representatives, suppliers or by
participants in the National Lottery after having been alerted to or becoming
aware of conditions conducive to the commission of fraud, or to instances of
fraud or dishonesty;22
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(g)if the licensee, any of its employees, agents, representatives or suppliers
prevent the board or any person designated by it from exercising its rights
contemplated in section 14(2)(h);
(h)if the licensee, any of its employees or agents repeatedly and knowingly sell
tickets or award or pay prizes to any person in contravention of section
14(2)(i)(iii); or
(i)if application has been made to a High Court for the sequestration or
liquidation, as the case may be, of the licensee or a person who in any way
controls the licensee.
Notice of proposed revocation
18.(1) If the Minister or the board is satis®ed that grounds exist for the revocation of
the licence granted in terms of section 13, he, she or the board, as the case may be, shall
in writing notify the licensee of the existence of such grounds and call upon the licensee
to furnish reasons, within 14 days of service of that notice at the registered physical
address of the licensee, as to why the licence should not be revoked, failing which the
licence will cease to be valid upon the expiration of the said period of 14 days.
(2) If the licence for the National Lottery ceases to be valid in terms of subsection (1),
the Minister or the board, as the case may be, shall forthwith inform the licensee and
Parliament in writing of that fact and of the date upon which the licence ceased to be
valid, and if Parliament is not then in session, it shall be so informed on the ®rst day of
the next session.
Suspension of licence
19.(1) The Minister or the board may order a suspension of the licence in the notice
contemplated in section 18(1) as from the date of service of that notice for a period of not
longer than 30 days after the licensee has furnished those reasons: Provided that the
Minister or the board, whoever acts in terms of this section, shall inform the other of his
or her or its actions.
(2) If the Minister or the board decides to suspend the licence in terms of subsection
(1), the Minister shall forthwith inform Parliament of that fact and of the grounds for the
suspension, and if Parliament is not then in session, on the ®rst day of the next session
of Parliament.
(3) The licence shall immediately cease to be valid if it is suspended for a second time.
(4) The Minister shall forthwith inform Parliament if the licence has ceased to be valid
in terms of subsection (3), and if Parliament is not then in session, on the ®rst day of the
next session of Parliament.
Revocation of licence
20.(1) If reasons are furnished by the licensee as contemplated in section 18(1), the
Minister or the board, as the case may be, shall after considering such reasonsÐ
(a)decide whether or not to revoke the licence; or
(b)call upon the licensee to appear before the board on a speci®ed date to make
oral representations in support of any written representations made by the
licensee or to answer any questions which the Minister or the board, as the
case may be, may have with regard to such written representations, whereafter
the Minister or the board shall consider the matter and decide whether or not
to revoke the licence.
(2) If the Minister or the board decides to revoke the licence, he or she or it shall by
written notice served at the registered head office of the licensee notify the licensee of
that fact, of the grounds for that revocation and of the date on which that revocation shall
take effect.
(3) If the Minister or the board decides to revoke the licence in terms of subsection
(1), the Minister or the board, as the case may be, shall inform the Minister of Finance
and Parliament of that fact and of the grounds for that revocation forthwith, and if
Parliament is not then in session, on the ®rst day of the next session of Parliament.24
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CHAPTER 3
Distribution of net proceeds of National Lottery
Establishment of National Lottery Distribution Trust Fund
21.(1) There is hereby established a fund to be known as the National Lottery
Distribution Trust Fund, to be managed by the board.
(2) The board shall annually table a report in Parliament in respect of the fund, which
may form part of the report contemplated in section 12(1)(b).
Fund to vest in and to be administered by board
22.(1) The fund shall vest in and be administered by the board.
(2) The fund shall be held in trust by the board for the purposes mentioned in this
Chapter.
Revenue of fund
23.The fund shall consist ofÐ
(a)the sums paid to the fund in terms of section 14(2)(e);
(b)interest and dividends derived from the investment of money standing to the
credit of the fund; and
(c)other money lawfully paid into the fund.
Banking account
24.(1) Money in the fund shall, pending the application thereof in terms of this
Chapter, be paid into an account to be known as “The National Lottery Distribution
Trust Fund” at a ®nancial institution.
(2) The ®nancial institution where the account contemplated in subsection (1) is kept,
shall not in respect of any liability of the board, not being a liability arising out of or in
connection with any such account, have or obtain recourse or any right, whether by
set-off, counter-claim, charge or otherwise, against money standing to the credit of such
account.
Investment of money not immediately required
25.(1) Any money of the fund or the board which is not required for immediate
allocation, may be invested with the Public Investment Commissioners or with a
®nancial institution approved by the Minister of Finance and may be withdrawn when
required.
(2) Any unexpended balance of the money of the fund at the end of any ®nancial year
shall be carried forward as a credit to the next succeeding ®nancial year.
Allocation of money in fund
26.(1) Every sum that is paid to the fund shall be appropriated for expenditure by the
board in accordance with subsections (2) and (3).
(2) So much of the sum referred to in subsection (1) as the Minister after consultation
with the board deems appropriate, shall be allocated for making payments under section
34 and held in the fund for that purpose.
(3) Of the balance in the fund after the deduction of the allocated sum referred to in
subsection (2)Ð
(a)not less than the prescribed percentage shall be allocated for expenditure on or
connected with reconstruction and development projects and other
programmes referred to in the Reconstruction and Development Programme
Fund Act, 1994 (Act No. 7 of 1994);26
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(b)not less than the prescribed percentage shall be allocated for charitable
expenditure;
(c)not less than the prescribed percentage shall be allocated for expenditure on or
connected with the development of sport and recreation;
(d)not less than the prescribed percentage shall be allocated for expenditure on or
connected with the arts, culture and the national historical, natural, cultural
and architectural heritage; and
(e)not more than the prescribed percentage shall, subject to section 31(1), be
allocated for expenditure in respect of any other matter and approved by the
Minister for that purpose.
Allocation to reconstruction and development programme
27.(1) The board shall pay so much of any sum paid to the fund as is allocated for
expenditure referred to in section 26(3)(a)to the Reconstruction and Development
Programme Fund established by section 2 of the Reconstruction and Development
Programme Fund Act, 1994 (Act No. 7 of 1994), or any other fund designated by the
Minister responsible for the administration of the Reconstruction and Development
Programme Fund Act, 1994, for this purpose.
(2) Any sum paid to a fund in terms of subsection (1), shall be utilised by the Minister
referred to in subsection (1) after consultation with the Premiers of the provinces.
Allocation to charities
28.(1) So much of any sum paid into the fund as is allocated for expenditure referred
to in section 26(3)(b), shall be held in the fund for distribution by the distributing agency
appointed by the Minister in consultation with the Minister responsible for welfare and
population development in the national sphere of government which possesses the
required skills and expertise to distribute the allocated sum fairly and equitably amongst
all persons who meet the prescribed requirements.
(2) The distributing agency shall consider applications for grants and may, subject to
section 33, pay such grants to appropriate recipients in accordance with this Act and
subject to the conditions applying to its appointment and to any directions issued by the
Minister after consultation with the Minister responsible for welfare and population
development in the national sphere of government, or by the Minister of Finance, from
the sum allocated for charitable purposes.
(3) Any appointment in terms of subsection (1) may at any time be revoked or the
conditions applying to that appointment may be varied by the Minister, and no claim
shall arise as a result of such revocation or variation.
(4) The Auditor-General or a person designated by him or her shall audit all ®nancial
statements re¯ecting expenditure from the sum allocated for charitable purposes.
(5) Any juristic person meeting the prescribed requirements may in the prescribed
form apply to the distributing agency for a grant.
Allocation to sport and recreation
29.(1) So much of any sum paid into the fund as is allocated for expenditure referred
to in section 26(3)(c), shall be held in the fund for distribution by the distributing agency
appointed by the Minister in consultation with the Minister responsible for sport and
recreation in the national sphere of government to distribute the allocated sum fairly and
equitably amongst all persons who meet the prescribed requirements.
(2) The distributing agency shall consider applications for grants and may, subject to
section 33, pay such grants to appropriate recipients in accordance with this Act and
subject to the conditions applying to its appointment and to any directions issued by the
Minister after consultation with the Minister of Sport and Recreation, or by the Minister
of Finance, from the sum allocated for the development of sport and recreation.28
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(3) Any appointment in terms of subsection (1) may at any time be revoked or the
conditions applying to that appointment may be varied by the Minister, and no claim
shall arise as a result of such revocation or variation.
(4) The Auditor-General or any person designated by him or her shall audit all
®nancial statements re¯ecting expenditure from the sum allocated for the development
of sport and recreation.
(5) Any juristic person meeting the prescribed requirements may in the prescribed
form apply to the distributing agency for a grant.
Allocation to arts, culture and national heritage
30.(1) So much of any sum paid into the fund as is allocated for expenditure referred
to in section 26(3)(d), shall be held in the fund for distribution by the distributing agency
appointed by the Minister in consultation with the Ministers responsible for arts, culture,
science and technology, and environmental affairs, in the national sphere of government
to distribute the allocated sum fairly and equitably amongst all persons who meet the
prescribed requirements.
(2) The distributing agency shall consider applications for grants and may, subject to
section 33, pay such grants to appropriate recipients in accordance with this Act and
subject to the conditions applying to its appointment and to any directions issued by the
Minister after consultation with the Ministers responsible for arts, culture, science and
technology, and environmental affairs, in the national sphere of government, or by the
Minister of Finance, from the sum allocated for arts, culture and the national historical,
natural, cultural and architectural heritage.
(3) Any appointment in terms of subsection (1) may at any time be revoked or the
conditions applying to that appointment may be varied by the Minister, and no claim
shall arise as a result of such revocation or variation.
(4) The Auditor-General or any person designated by him or her shall audit all
®nancial statements re¯ecting expenditure from the sum allocated for arts, culture and
the national historical, natural, cultural and architectural heritage.
(5) Any juristic person meeting the prescribed requirements may in the prescribed
form apply to the distributing agency for a grant.
Allocation for miscellaneous purposes
31.(1) So much of any sum paid into the fund as has been allocated for expenditure
referred to in section 26(3)(e), shall be held in the fund for appropriation for expenditure
by the board.
(2) The Minister may in consultation with the Minister of Finance and after
consultation with the board appoint such distributing agency or agencies as may be
necessary to distribute the allocated sum fairly and equitably amongst all persons who
meet the prescribed requirements.
(3) The distributing agency shall consider applications for grants and may, subject to
section 33, pay such grants to appropriate recipients in accordance with this Act and
subject to the conditions applying to its appointment and to any directions issued by the
Minister, or by the Minister of Finance, from the sum allocated for the speci®c purpose
identi®ed by the Minister after consultation with the board.
(4) Any appointment in terms of subsection (2) may at any time be revoked or the
conditions applying to that appointment may be varied by the Minister, and no claim
shall arise as a result of such revocation or variation.
(5) The Auditor-General or any person designated by him or her shall audit all
®nancial statements re¯ecting expenditure from the sum allocated for the speci®c
purpose identi®ed by the Minister after consultation with the board.
(6) Any juristic person meeting the prescribed requirements may in the prescribed
form apply to the distributing agency for a grant.30
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Payment of allocations
32.(1) The Minister shall, after consultation with the board, in respect of any
allocation awarded for a speci®c good cause which the board pays over to the
distributing agency appointed by the Minister or in respect of a grant which a
distributing agency may pay to a recipient, impose such conditions as he or she deems
®t, in addition to conditions requiringÐ
(a)the amount of a grant or an allocation to be repaid forthwith on breach of any
condition, in addition to any penalties which the Minister, the board or the
distributing agency, as the case may be, may impose;
(b)that a percentage of the allocation at the disposal of the distributing agency for
grants determined by the board or the Minister shall be allocated to recipients
in a speci®ed province;
(c)that a juristic person shall in respect of amounts granted to it from time to time
provide the board or the distributing agency with audited accounts of all
amounts distributed; and
(d)any recipient of a grant to provide the board or the distributing agency with
any relevant information it may require.
(2) In deciding on the juristic persons to whom grants are to be made, the Minister or
the distributing agency, as the case may be, shall be satis®ed that any such juristic
person is competent to allocate the amounts equitably among all the members it
represents.
(3) In considering any application for a grant in terms of this Chapter, the distributing
agency shall comply with any directions given to it by the Minister as to the matters to
be taken into account in determining the persons to whom, the purposes for which and
the conditions subject to which that distributing agency is to allocate any amounts.
(4) In performing his or her functions in terms of subsection (3), the Minister shallÐ
(a)consult with the board and the relevant distributing agency before giving any
directions to that distributing agency; and
(b)take into accountÐ
(i) general development in the Republic, with speci®c reference to the
regional, economic, ®nancial, social and moral interests of the Republic
and the enhancement of the standard of living of all the people in the
Republic; and
(ii) provincial and local interests, includingÐ
(aa)the number of lottery tickets sold in each province;
(bb)the population of each province; and
(cc)the ®nancial requirements of each province.
Power of Minister to prohibit certain grants
33.The Minister may within seven days after a distributing agency has made a grant
to a juristic person under this Chapter, prohibit that distributing agency from paying out
such grant if such grant is likely to be utilised for any unlawful purpose or fails to
comply with the conditions the Minister has imposed in terms of section 32: Provided
that the Minister shallÐ
(a)consult with the board and that distributing agency before any such
prohibition is imposed; and
(b)disclose to the board and that distributing agency any information at his or her
disposal which may indicate that any such grant is likely to be utilised for any
unlawful or improper purposes.
Payments from fund in respect of expenses
34.(1) At such times as the Minister deems appropriate, payments shall be allocated
to the board out of the money in the fund held under section 26(2) in respect of the
board’s expenses.32
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(2) The payments shall be of such amounts as the Minister deems sufficient for
meeting the payments made or to be made under sections 6(1) and 7(2), or any other
expenses incurred by the board.
(3) In determining what amounts are sufficient for meeting the payments referred to
in subsection (2), the Minister shall take into account sums paid or to be paid to the board
in terms of section 14(3).
Public administration
35.Every institution which in any way acts under or in terms of this Act, must comply
strictly with section 195 of the Constitution.
PA RT I I
OTHER LOTTERIES
CHAPTER 1
Lotteries incidental to exempt entertainment, private lotteries, society lotteries and
promotional competitions
Lotteries incidental to exempt entertainment
36.(1) A lottery conducted as an incident of an exempt entertainment shall not be
unlawful ifÐ
(a)all the proceeds of the entertainment, including the proceeds of the lottery,
after deductingÐ
(i) the expenses of the entertainment, excluding expenses incurred in
connection with the lottery;
(ii) the expenses incurred in printing tickets in the lottery and advertising of
that lottery; and
(iii) such sum, if any, not exceeding the prescribed amount for any expenses
incurred in purchasing prizes for the lottery,
are utilised for the bene®t of any deserving section of the public;
(b)none of the prizes in the lottery are money prizes;
(c)the total value of tickets sold or to be sold, is not more than the prescribed
amount;
(d)the opportunity of participating in lotteries contemplated in this section, or
such opportunity together with any other opportunity of participating in
lotteries or gambling, is not the only substantial inducement to persons to
attend the entertainment; and
(e)it is conducted for members of a society established and conducted for
purposes not connected with lotteries, gambling or betting.
(2) For the purposes of subsection (1) “exempt entertainment” means a bazaar, sale,
fØte, dinner, dance, sporting event or other entertainment of a similar character.
Private lotteries
37.(1) A private lottery shall not be unlawful ifÐ
(a)all the proceeds, after deducting only expenses incurred for printing and
stationery pertaining to tickets of that lottery and notices advertising that
lottery, are devoted to the provision of prizes for purchasers of tickets or
chances, or, in the case of a lottery conducted for the members of a society,
such proceeds are devotedÐ
(i) to the provision of prizes;
(ii) to the purposes for which the society was established; or
(iii) to the provision of prizes as well as to the purposes for which the society
was established;
(b)no written notice or advertisement of the lottery is exhibited, published or
distributed other thanÐ34
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(i) a notice thereof exhibited on the premises of the society for whose
members the lottery is conducted or, as the case may be, on the premises
on which the persons for whom the lottery is conducted, ordinarily work
or reside; and
(ii) such announcement or advertisement of the lottery as is contained in the
text printed on the tickets, if any;
(c)no person is employed for reward in any form whatsoever in connection with
the conduct of the lottery;
(d)no ticket in the lottery is sent through the post;
(e)the total value of the tickets or chances sold or to be sold or the total value of
the prizes in that lottery is not more than the prescribed amount determined by
the Minister in consultation with the board;
(f)the sale of tickets in the lottery is con®nedÐ
(i) to the persons for whom the lottery is conducted; and
(ii) in the case of a lottery conducted for the members of a social or sporting
club, also to any other person who is on the premises of such club at the
time of sale;
(g)it is conducted for members of a society established and conducted for
purposes not connected with lotteries, gambling or betting; and
(h)a person purchasing a ticket for a private lottery does not solely by purchasing
that ticket become a member of the club or society which conducts that lottery
or on whose behalf that lottery is conducted.
(2) For the purposes of this section each local or affiliated branch or section or branch
of a society shall be regarded as a distinct society.
(3) The board may determine the maximum number and frequency of private lotteries
that may be promoted in any period of 12 months on behalf of the same social or
sporting club, or on the same premises where persons work or reside.
CHAPTER 2
Society lotteries
Society lottery
38.A society lottery shall not be unlawful ifÐ
(a)it is conducted only in the Republic;
(b)the society for whose bene®t the lottery is run or to be run, is authorised to
collect contributions from the public in terms of the provisions of the
Fund-raising Act, 1978 (Act No. 107 of 1978);
(c)the society lottery is conducted in accordance with a scheme approved by that
society and the board;
(d)that society is registered with the board in terms of section 41;
(e)the total value of the tickets or chances sold or to be sold and the total or
individual value of the prizes in the lottery does not exceed the prescribed
amounts;
(f)the total proceeds of the society lottery, after deducting sums lawfully
appropriated on account of expenses, including the expenses in respect of an
audit contemplated in section 46, or for the provision of prizes, not exceeding
the prescribed amount or percentage, are applied solely toÐ
(i) recognised charitable purposes in respect of which that society is
authorised to collect contributions in terms of the Fund-raising Act,
1978;
(ii) participation in or support of sport or cultural activities in respect of
which that society is authorised to collect contributions in terms of the
Fund-raising Act, 1978; or
(iii) other purposes which the board approves and which are not purposes of
private gain nor purposes of any commercial undertaking;
(g)the society lottery is conducted strictly in accordance with the rules referred to
in section 53;36
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(h)the society lottery is conducted for members of a society established and
conducted for purposes not connected with lotteries, gambling or betting;
(i)tickets for the society lottery are not advertised, marketed, promoted or sold
other than in the prescribed area; and
(j)the lottery is not advertised, marketed or promoted jointly with another
society lottery and the funds for prizes are not combined with those of another
society lottery.
Management of society lotteries
39.No person shall manage a society lottery unless that person isÐ
(a)a member of the society on whose behalf the lottery is conducted, acting in
such capacity;
(b)an employee of that society acting in the course of his or her employment;
(c)a corporate body that is wholly owned by the society;
(d)certi®ed as a lottery manager under section 47; or
(e)an employee of a person referred to in paragraph(d)acting in the course of his
or her employment.
Frequency of society lotteries
40.(1) The Minister may prescribeÐ
(a)the maximum number of lotteries that shall, in consultation with the board and
after consultation with the person to whom the licence to conduct the National
Lottery has been issued, be conducted under section 38 in any period of
12 months by or on behalf of any one society;
(b)the minimum number of days that must elapse between the dates of any two
lotteries conducted under section 38 on behalf of the same society; and
(c)any other matter to be prescribed in terms of section 38.
(2) Anything prescribed under subsection (1) may make different provision for
different cases or circumstances.
CHAPTER 3
Functions of board in respect of society lotteries
Registration of societies
41.(1) An application to the board for the registration of a society shallÐ
(a)specify the address of the office or head office of the society;
(b)specify the purposes for which the society was established;
(c)include a copy of the registration of the society in terms of the Fund-raising
Act, 1978; and
(d)include a copy of any scheme approved by the society in terms of section
38(c).
(2) Subject to the provisions of this Chapter, the board shall register the society in a
register to be kept for that purpose.
(3) A society shall not be registered under this section and no scheme shall be
approved by the board unlessÐ
(a)application on behalf of the society has been made to the board in writing as
contemplated in subsection (1) and the applicant has furnished such further
information as may be prescribed by the Minister;
(b)the board is satis®ed thatÐ
(i) any person who will be conducting a lottery on behalf of the society is a
®t and proper person;
(ii) the society has adequate resources available to provide facilities that are
necessary for conducting the lottery;
(iii) the society complies with the requirements of section 38;38
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(iv) no information given by the society to the board in or in connection with
the society’s application for registration was materially false;
(v) the address of the office or head office of the society is not the same as the
address of the office or head office of another society that is established
for the same or a connected purpose and is registered under this section;
(vi) every lottery conducted on behalf of the society within the last ®ve years
has been properly conducted to the satisfaction of the board;
(vii) the society has not failed to comply with a requirement imposed under
section 38, 44, 45 or 46;
(viii) if the society lottery is to be conducted by a lottery manager, that that
lottery manager has provided security as prescribed by the Minister;
(ix) no act or omission by a person who is or will be connected with a society
lottery conducted or proposed to be conducted on behalf of the society
causedÐ
(aa)the registration of another society to be refused or revoked as a
result of information contemplated in subparagraph (iv) or section
44, 45 or 46; or
(bb)a lottery, in the conduct of which such person was involved, to be
improperly conducted; and
(x) the scheme attached to the application for registration, or any other
scheme subsequently approved by the society under section 38(c),is
lawful and will be run in accordance with sound ®nancial principles and
methods.
Revocation of registration
42.The boardÐ
(a)shall revoke the registration of a society if the society requests the board to do
so; and
(b)may revoke the registration of a society if the society has failed to comply
with any requirement contained in section 41(3), 44, 45 or 46: Provided thatÐ
(i) the registration shall not be revoked without giving the society an
opportunity of being heard; and
(ii) the society shall be noti®ed in writing of the revocation and the grounds
therefor.
Fees and levies
43.A society registered under this Chapter shall pay to the boardÐ
(a)such fee or levy as the board may determine from time to time; and
(b)the fee or levy determined by the board for each society lottery conducted on
behalf of the society.
Requirements after registration of society
44.(1) Any society registered under section 41 shallÐ
(a)notify the board in writing of any change in the address of the society’s office
or head office not later than 21 days prior to the day on which such change
takes effect;
(b)subject to subsection (2), notify the board in writing of any amendment or
substitution of the scheme contemplated in section 38(c);
(c)within three months after the completion of a society lottery, submit to the
board a return in respect of that lottery in such form and manner and with such
information as the Minister may require; and
(d)preserve all documents including all information kept by the society otherwise
than in writing, relating to a lottery conducted on behalf of the society for not
less than ®ve years after the date of the lottery.
(2) Any noti®cation in terms of subsection (1)(b)shall be given to the board not less
than four weeks before any tickets or chances are sold, distributed or offered for sale, in40
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respect of a lottery conducted in accordance with the scheme as modi®ed, amended or
substituted.
(3) Any return submitted to the board in terms of subsection (1)(c)shall be pre-
served by the board for not less than 18 months and be open to the public for
inspection.
Control of registered societies
45.The board may require a society registered under section 41 or a society that has
applied for such registrationÐ
(a)to furnish the board with such information relating to any lottery conducted or
to be conducted on behalf of the society as the board may require;
(b)to allow any person authorised by the board thereto, to inspect and take copies
of any documents of the society, including any information kept by the society
otherwise than in writing, relating to such a lottery;
(c)where such information is kept by means of a computer, to give the board such
assistance as it may require to enable it to inspect and take copies of the
information in a visible and legible form and to inspect the operation of any
computer and any associated apparatus or material that is or has been in use in
connection with the keeping of such information; and
(d)to allow the board to inspect any aspect of the management of such a lottery.
Audit of society lottery
46.(1) A society shall submit to the board ®nancial statements in respect of all
lotteries conducted on its behalf prepared by an independent auditor registered in terms
of the Public Accountants’ and Auditors’ Act, 1991 (Act No. 80 of 1991), together with
a report by that auditor on such statements.
(2) The ®nancial statements referred to in subsection (1) shallÐ
(a)be submitted to the board within three months of the end of the year in which
the lotteries to which such statements relate, were held; and
(b)comply with generally accepted accounting principles and any other
directions that may be given by the board as to the information to be contained
in such statements, the manner in which such information is to be presented or
the methods and principles according to which such statements are to be
prepared.
(3) The report of the auditor referred to in subsection (1), shall state whether in the
said auditor’s opinionÐ
(a)the ®nancial statements have been properly prepared in accordance with the
principles and any directions contemplated in subsection (2)(b);
(b)proper accounting records have been kept by the society; and
(c)the society’s accounts are in agreement with the ®nancial statements:
Provided that if the said auditor is unable to obtain all the information and explanations
that, to the best of his or her knowledge and belief, are necessary for the purposes of the
audit, his or her report shall state accordingly.
(4) For the purposes of this sectionÐ
(a)a lottery shall be deemed to have been conducted in the year in which the
winners of prizes are announced to the public; and
(b)“year” means a period of 12 months starting on 1 January.
Certi®cation of lottery managers
47.(1) An application by a person to be certi®ed as a lottery manager shall be made
to the board in such form and manner and shall contain such information as the board
may require, which shall includeÐ
(a)sufficient information to fully identify the applicant;42
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(b)information in respect of its shareholders or the persons in any other way
controlling it, if the applicant is a juristic person, or a curriculum vitae if the
applicant is a natural person; and
(c)the applicant’s physical address.
(2) A fee determined by the board shall be payable when the application is made.
(3) The board shall subject to the provisions of this section grant a certi®cate to an
applicant certifying him or her or it as a lottery manager.
(4) A person shall not be granted a certi®cate under this section, if in the opinion of the
boardÐ
(a)any person who would be likely to manage or in any other way control the
business or any part of the business of managing lotteries under the certi®cate
is not a ®t and proper person to do so;
(b)any person for whose bene®t that business would be likely to be carried on, is
not a ®t and proper person to bene®t from it;
(c)any information given by the applicant to the board in or in connection with
the application is false in a material respect;
(d)the applicant does not have the appropriate knowledge, experience or
resources available to manage the society lottery;
(e)in the past the applicant acted in any way which caused harm or could have
caused harm toÐ
(i) any lottery which he or she was conducting;
(ii) the society on whose behalf he or she was conducting a lottery; or
(iii) the integrity of society lotteries in general; or
(f)the applicant fails to meet any requirement prescribed by the Minister.
(5) If the board refuses to grant a certi®cate, the board shall notify the applicant in
writing of the refusal and the grounds for such refusal.
(6) If the board grants a certi®cate, the holder of the certi®cate shall in writing inform
the board of any change to the information supplied to the board in terms of subsection
(1) at least seven days before that change comes into effect.
Conditions of certi®cate
48.A certi®cate contemplated in section 47 shall, subject to this Chapter, contain
conditions aimed atÐ
(a)protecting the interests of any society on behalf of which the holder of the
certi®cate might conduct a lottery, including the provision of security;
(b)protecting the interests of participants in any lottery to be conducted by the
holder of the certi®cate; and
(c)ensuring proper management of a lottery by the holder of the certi®cate.
Variation of conditions of certi®cate
49.(1) The board may, after giving the certi®cate holder an opportunity of being
heard, vary any condition in a certi®cate.
(2) If the board varies a condition under this section, the board shall give notice in
writing of the variation to the certi®cate holder at the physical address furnished by the
certi®cate holder in terms of section 47(1)(c).
(3) The variation of a condition shall take effect on a date stipulated in the notice
contemplated in subsection (2).
Period of validity of certi®cate
50.A certi®cate shall be valid for a maximum period of three years or until it is
revoked by the board during such period.
Revocation of certi®cate
51.(1) The following shall constitute grounds for the revocation of a certi®cate
contemplated in section 47:44
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(a)If the certi®cate holder is no longer a ®t and proper person to manage or in any
other way conduct a society lottery, whether because of the commission of an
act of insolvency, insolvency, liquidation, judicial management, incarceration
in a prison or other institution, or for any other valid reason;
(b)if the certi®cate holder allows any person or body to derive a bene®t from a
lottery contrary to the provisions of this Act;
(c)if any information given by the certi®cate holder to the board in connection
with the application for the certi®cate was false in a material respect;
(d)if the certi®cate holder contravenes or fails to comply with a condition in the
certi®cate or a provision of this Act; or
(e)if the certi®cate holder is convicted on a charge of theft, fraud, forgery or
uttering a forged document, perjury, an offence in terms of the Corruption Act,
1992, or any offence involving dishonesty.
(2) If the board is satis®ed that grounds exist for the revocation of a certi®cate
contemplated in section 47, it shall in writing notify the certi®cate holder of the
existence of those grounds and call upon him or her to furnish reasons, within seven
days, as to why the certi®cate should not be revoked, failing which the certi®cate will
cease to be valid.
(3) If the reasons contemplated in subsection (2) are not received by the board within
the period of seven days, the board shall inform all societies on whose behalf the
certi®cate holder has conducted lotteries of the fact that the certi®cate granted to that
certi®cate holder has ceased to be valid, of the date on which it so ceased to be valid and
of the grounds for revocation enumerated in the notice to the certi®cate holder as
contemplated in subsection (2).
(4) If reasons are furnished by the certi®cate holder as contemplated in subsection (2),
the board shall not revoke the certi®cate without having given due consideration to such
reasons.
(5) If the board revokes a certi®cate under this section, the board shall give written
notice of the revocation and of the grounds for the revocation to the certi®cate holder
and all societies on whose behalf the certi®cate holder is known to have conducted
lotteries.
(6) The revocation of the certi®cate shall take effect 21 days after the date of the notice
in terms of subsection (5).
Control of lottery managers and audit
52.The provisions of sections 44(1)(c)and(d), 45 and 46 shall applymutatis
mutandisto lottery managers, and in such application a reference in those sections to a
society shall be construed as a reference to a lottery manager.
Rules of society lotteries
53.(1) A society lottery shall be conducted in accordance with the rules prescribed by
the Minister and set out in subsection (2).
(2)(a)The person conducting the society lottery shall be a member of the society on
whose behalf that society lottery is conducted or a lottery manager certi®ed in terms of
section 47 and shall be authorised in writing by the governing body of the society to act
as the person conducting that society lottery.
(b)Every ticket distributed or sold, shall specify the name and address of the person
conducting the society lottery and the date of the lottery.
(c)No ticket in a society lottery shall be sold at a price exceeding the prescribed
amount.
(d)The price of every ticket shall be the same, and the price of any ticket distributed
or sold, shall be stated on the ticket.
(e)No person shall be admitted to participate in a society lottery in respect of a ticket
except after payment to the society or lottery manager of the whole price of the ticket,
and no money received for or on account of a ticket or chance shall in any circumstances
be returned.46
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(f)No payment other than the price of a ticket shall be required of a person as a
condition of his or her admission to participate in a society lottery.
(g)The total value of the prizes in a society lottery shall not exceed the prescribed
amount in value, which shall not exceed R1 000 000 per year per society.
(h)The total value of the tickets sold in any one society lottery shall not exceed the
prescribed amount.
(i)The total value of the tickets sold in all society lotteries conducted in any year on
behalf of the same society shall not exceed the prescribed amount.
(j)The amount appropriated for the provision of prizes shall not exceed 50 per cent of
the proceeds of the lottery.
(k)No chance or opportunity to take part in a society lottery shall be sold other than
by way of a ticket.
(l)Every ticket shall on its reverse side contain the information prescribed by the
Minister.
(m)(i) The amount appropriated on account of expenses, excluding prizes, shall not
exceed whichever is the lesser ofÐ
(aa)the expenses actually and necessarily incurred; or
(bb)whichever of the amounts speci®ed in subparagraph (ii) applies.
(ii) The amounts referred to in subparagraph (i)(bb)areÐ
(aa)where the proceeds of the lottery do not exceed the prescribed amount, such
percentage as may be prescribed by the Minister; or
(bb)where the proceeds of the lottery exceed the prescribed amount, such
percentage as may be prescribed by the Minister.
(iii) For the purposes of subparagraph (i), the amount of any expenses that are metÐ
(aa)by the society on whose behalf the lottery is conducted; or
(bb)by any bene®ciary of the lottery,
shall be deemed to have been appropriated on account of expenses from the proceeds of
the lottery.
(iv) The amount of the proceeds of a society lottery appropriated for the provision of
prizes and the amount of those proceeds appropriated on account of expenses, excluding
prizes, shall not in aggregate exceed the prescribed percentage of the proceeds of the
lottery.
(3)(a)For the purposes of subsection (2)(m)(iii)(bb), “bene®ciary of the lottery”
means a person or body, other than the society on whose behalf the lottery is conducted,
to whom or for whose bene®t any of the proceeds of the lottery, other than amounts
appropriated in respect of expenses or prizes, are lawfully paid or applied.
(b)For the purposes of this section, unless the context indicates otherwise, “year”
means a period of 12 months commencing on 1 January: Provided that if this Act comes
into effect on a date other than 1 JanuaryÐ
(i) the period commencing on such other date and ending on the last day of the
next December, shall be deemed to be the ®rst year for the purposes of
subsection (2)(i); and
(ii) in relation to the period mentioned in subparagraph (i) the reference to the
prescribed amount in subsection (2)(i)shall be construed as a reference to a
proportionately smaller amount.
Promotional competitions
54.(1) A promotional competition shall not be unlawful ifÐ
(a)it is conducted in the Republic;
(b)the consideration payable in respect of the purchase of goods or the use of
services in respect of which that promotional competition is conductedÐ
(i) is the price usually or ordinarily paid for such or similar goods or services
without the opportunity of taking part in a promotional competition;
(ii) is not increased by the opportunity to participate in that promotional
competition;
(iii) is the only consideration payable for those goods or services and includes
consideration for the right to compete; and48
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(c)the opportunity of participating in the promotional competition is not the only
or the only substantial inducement to a person to purchase or use the goods or
services to which the promotional competition relates;
(d)the promotional competition is conducted in accordance with the regulations
prescribed by the Minister in terms of subsection (2);
(e)the promotional competition or any conduct under it is not substantially
comparable toÐ
(i) a business practice which has been declared unlawful in terms of the
Harmful Business Practices Act, 1988 (Act No. 71 of 1988); or
(ii) a restrictive practice which has been declared unlawful in terms of the
Maintenance and Promotion of Competition Act, 1979 (Act No. 96 of
1979);
(f)the Minister has not in terms of subsection (4) declared the promotional
competition unlawful;
(g)the goods or services manufactured, sold, supplied, distributed or delivered in
connection with the right to participate in a promotional competition are
usually or ordinarily manufactured, sold, supplied, distributed or delivered by
the person for whose bene®t the promotional competition is held; and
(h)where the promotional competition is held in association or jointly with or in
support of another promotional competition or in respect of or for the bene®t
of more than one person, the maximum values or limits prescribed by the
Minister in respect of the total value or number of prizes, the frequency,
duration or number of promotional competitions or the geographical area in
which promotional competitions may be held, are not exceeded; and
(i)the promotional competition is not substantially similar to any competition,
game or sports pool conducted by or on behalf of the National Lottery.
(2) The Minister shall, after consultation with the board, with due regard to the effect
of promotional competitions on the National Lottery, lotteries incidental to an exempt
entertainment and society lotteries, make regulations in respect of promotional
competitionsÐ
(a)in general;
(b)in respect of a particular category of promotional competitions;
(c)in respect of a particular category of persons conducting or in any way
associated with a promotional competition; or
(d)in respect of a category of persons who may participate in a promotional
competition or a category of promotional competitions.
(3) The regulations shall include provisions in respect ofÐ
(a)the minimum age of a person who may participate in any particular
competition or category of competitions;
(b)(i) the maximum value of prizes in a calendar year, which shall not exceed
R1 000 000;
(ii) the maximum number of prizes in a calendar year; and
(iii) the nature of prizes,
which may be utilised in respect of a promotional competition or a speci®ed
number of such competitions by a person who or category of persons which
conducts, promotes, organises or in any other way is associated with a
promotional competition or such competitions;
(c)subject to paragraph(b), the maximum value of prizes in a calendar year,
which shall not exceed R1 000 000, the maximum number of prizes in a
calendar year and the nature of prizes in respect of any speci®c promotional
competition or category of promotional competitions;
(d)noti®cation of the board of every promotional competition, and the conditions
and requirements in respect thereof, including the information required in
respect of that noti®cation and the payment of a fee to the board in respect of
the processing of that noti®cation;
(e)the frequency, duration and maximum number of promotional competitions to
be run in a calendar year by a person who or category of persons which
conducts, promotes, organises or in any other way is associated with a
promotional competition;50
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(f)the geographical area in which a promotional competition or category of
promotional competitions may be conducted, if such area is not the whole
territory of the Republic; and
(g)the conditions or circumstances under which the board or any person
designated by it may without consent of the person who conducts the
promotional competition inspect any aspect, including any process or
procedure, relating to a promotional competition, including the accounting
procedures and the process of identifying the winner or winners of that
promotional competition.
(4) The Minister may on the recommendation of the board by notice in theGazette
declare a promotional competition to be unlawful.
(5) Any person conducting a promotional competition which in terms of subsection
(4) has been declared unlawful, shall immediately cease to conduct such competition
and shall immediately instruct all his or her or its agents and any other person connected
with that competition to immediately terminate any action connected with the conduct
of that competition, and any person who fails to comply with this subsection or an
instruction thereunder is guilty of an offence.
CHAPTER 4
Sports pools
Licence to conduct sports pools
55.(1) The Minister may, after consultation with the board, by licence authorise the
licensee to conduct a national sports pool: Provided that the licence shall specify the
sports pools, or descriptions of sports pools, the conduct of which it authorises.
(2) The power of the Minister to prescribe the percentages in terms of section 26(3)
may be exercised so as to make different provision in relation to sports pools.
PART III
General provisions
Unlawful lotteries and competitions
56.Unless authorised by or under this Act or any other law, no person shall conduct
through any newspaper, broadcasting service or any other electronic device, or in
connection with any trade or business or the sale of any article to the publicÐ
(a)any competition or lottery other than one authorised by or under this Act in
which prizes are offered for forecasts of the result of eitherÐ
(i) a future event; or
(ii) a past event, the result of which has not yet been ascertained or is not yet
generally known;
(b)any competition other than a promotional competition contemplated in
section 54 in which success does not depend to a substantial degree on skill;
or
(c)any promotional competition which is the subject of a declaration contem-
plated in section 54(4).
General offences
57.(1) Any person whoÐ
(a)participates in; or
(b)conducts, facilitates, promotes or derives any bene®t from a lottery,
promotional competition or sports pool,
shall, unless such lottery, promotional competition or sports pool is or has been
authorised by or under this Act or any other law, be guilty of an offence.
(2) Any person whoÐ
(a)contravenes or fails to comply with any provision of this Act;52
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(b)forges or in any other fraudulent way changes any ticket or any other
document or thing pertaining to any lottery or promotional competition;
(c)knowingly sells or in any other way disposes of any forged ticket or any other
document or thing pertaining to any lottery or promotional competition;
(d)with intent to defraud, alters any number or ®gure on any ticket or any other
document or thing pertaining to any lottery or promotional competition;
(e)obtains any direct or indirect ®nancial gain, which is not solely a share in the
prize payout, by forming, conducting or in any other way promoting a
syndicate for the purchase of a ticket; or
(f)sells a ticketÐ
(i) at a price higher than that which is printed on the ticket;
(ii) on condition that the seller of the ticket shares in the prize in the event of
a ticket sold by him or her being the ticket in respect of which a prize is
paid;
(iii) on any condition not provided for in the rules of the lottery concerned;
(iv) on credit or with the ®nancial assistance in any form of the seller; or
(g)conducts, organises, promotes, devises or manages any scheme, plan,
competition, arrangement, system, game or device which directly or indirectly
provides for betting, wagering, gambling or any other game of risk on any
outcome of any lottery unless authorised by or under this Act or any other law,
shall be guilty of an offence.
Offences relating to National Lottery and sports pools
58.(1) Any person whoÐ
(a)advertises or offers the opportunity to participate in a lottery, promotional
competition, competition or game of another description and who gives, by
whatever means, a false indication that it is a lottery, competition or game
forming part of, or is otherwise connected with, the National Lottery or is a
sports pool licensed in terms of section 55;
(b)with the intent to defraud, falsely makes, alters, forges, utters, passes or
counterfeits a National Lottery ticket or sports pool ticket;
(c)in¯uences or attempts to in¯uence the winning of a prize through the use of
coercion, fraud or deception, or through tampering with lottery or sports pool
equipment, systems, software, data, tickets or materials; or
(d)fails to comply with any regulation made under section 60,
shall be guilty of an offence.
Prohibition of activities in Republic in relation to lottery or sports pool conducted
outside Republic
59.In a prosecution arising from any thing done or not done in the Republic in
connection with a lottery or sports pool, it shall not be a defence merely to prove that the
management, conduct or business of or concerning the lottery or sports pool in question
is or was wholly or in part carried on at a place outside the Republic.
Regulations in respect of National Lottery and sports pools
60.The Minister may, with the concurrence of the board, make regulations
regardingÐ
(a)the conduct of the National Lottery or sports pools, includingÐ
(i) the minimum age of persons to whom or by whom tickets or chances may
be sold;
(ii) the persons or categories of persons who shall be disquali®ed from
participation;
(iii) the places where or circumstances or manner in which tickets or chances
may be sold or persons may be invited to buy such tickets or chances;
(iv) the circumstances under which lotteries and sports pools may be
advertised and the information that is to appear in an advertisement for a
lottery or sports pool;54
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(v) the places where or circumstances or manner in which signs relating to a
lottery or sports pool may be displayed;
(vi) the rules referred to in section 14(2)(g);
(vii) application and licensing fees referred to in section 14(3);
(viii) the percentages of the sums to be allocated in terms of section 26; and
(ix) in general any other matter which may be necessary or expedient to
prescribe in order to achieve or promote the objects of Part I of this Act;
and
(b)the making of oral representations as contemplated in section 20(1)(b).
Regulations in respect of lotteries incidental to exempt entertainments, private and
society lotteries
61.(1) The Minister may, with the concurrence of the board, make regulations
regarding the conduct of lotteries incidental to exempt entertainments, private lotteries
and society lotteries, includingÐ
(a)the nature and requirements of any scheme contemplated in section 38(c);
(b)the persons or categories of persons to whom and by whom tickets or chances
in a lottery may or may not be sold;
(c)the circumstances in which tickets or chances may be sold and persons may be
invited to purchase tickets or chances;
(d)the minimum age at which any person may buy a ticket or chance;
(e)any information which shall, or shall not, appear on a ticket;
(f)the manner in which a lottery may be advertised;
(g)the use of postal services in connection with lotteries;
(h)the matters in respect of which expenses in a lottery may be incurred; and
(i)in general, any other matter which may be necessary or expedient to prescribe
in order to achieve or promote the objects of Part II of this Act.
(2) Any power to make regulations under this section may be exercised so as to make
different provision in relation to different cases or different circumstances.
Penalties
62.Any person convicted of an offence in terms of this Act shall be liable to a ®ne or
to imprisonment or to both a ®ne and imprisonment.
Savings
63.Nothing in this Act shall apply in relation to any lottery, sports pool or competition
in respect of which there is no subscription.
Transitional provisions
64.(1) Every valid licence forÐ
(a)a state lottery, issued in terms of the State Lotteries Act, 1984 (Act No. 14 of
1984) (Ciskei), or the Lotteries Decree, 1989 (Decree No. 14 of 1989)
(Transkei); and
(b)a lottery or sports pool issued in terms of a law or provision repealed by
section 65, or issued in terms of the Gaming and Betting Act, 1989 (Act No.
39 of 1989) (Bophuthatswana),
shall at a date determined by the Minister by notice in theGazettecease to be valid.
(2) All unexpended money inÐ
(a)the Distribution Account referred to in the State Lotteries Act, 1984 (Act No.
14 of 1984) (Ciskei); and
(b)the State Lottery Trustee Account referred to in the Lotteries Decree, 1989
(Decree No. 14 of 1989) (Transkei),
immediately before the commencement of this Act, shall be paid into the fund.56
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Lottery debts enforceable
65.Any lottery debt lawfully incurred by a person in the course of any lottery or
sports pool shall, notwithstanding provisions of any law or the common law, be
enforceable in a court of law.
Registration of illegal lotteries
66.(1) Any juristic personÐ
(a)authorised before 1 January 1997 to collect contributions from the public in
terms of the Fund-raising Act, 1978;
(b)who collects or has collected such contributions by means of any activity
relating to a lottery which is prohibited in terms of the Gambling Act, 1965, or
any other legislation pertaining to gambling or lotteries; and
(c)who on a regular basis has paid or pays a percentage of its total income to a
registered charity organisation,
may within a period of three months after the commencement of this Act in the
prescribed manner apply to the Minister or the board for registration of such activity.
(2) The Minister or the board may permit the registration of the juristic person
contemplated in subsection (1) if it is in the Minister’s or the board’s opinion desirable
to do so, subject to any conditions he or she or it may impose, including any conditions
in respect of the auditing of the ®nancial statements of that person.
(3) Activities contemplated in subsection (1) shall be deemed to be lawful as from the
date of registration until a date determined by the Minister by notice in theGazette,
which date shall be not later than seven days prior to the date on which tickets for the
National Lottery are sold for the ®rst time.
(4) The Minister or the board may at any time and without any prior notice withdraw
the registration in terms of subsection (2) of any juristic person if in the Minister’s or the
board’s opinion it is desirable to do so.
(5) No right other than is provided for in subsection (3) and no legitimate expectations
shall accrue as a result of registration in terms of this section.
(6) A juristic person who in terms of subsection (1) has applied for registration or who
in terms of subsection (2) has been registered, shall provide the Minister or the board
with any information he or she or it may require at any time.
(7) Any person designated by the Minister or the board shall at any reasonable time
have the right toÐ
(a)examine any thing, machine, document or data captured in any form, found on
or in the premises or facility of the person who has been registered, and make
copies of or make extracts from that thing, machine, document or data;
(b)seize, for the purpose of further examination or securing information, any
thing, machine, document or data, excluding proprietary software, on or in
those premises or facility; or
(c)seal or otherwise secure any such premises, facility, thing or machine on or in
which any document or data which has a bearing on the activities
contemplated in subsection (3) is stored or captured.
(8) The Minister shall every four months until the date on which tickets for the
National Lottery are sold for the ®rst time table a report in Parliament on all matters
provided for in this section, and if Parliament is not then in session, on the ®rst day of
its next session.
(9) This section shall two years after the commencement of this Act cease to be of any
force.
Access to information
67.(1) Subject to the Constitution, any legislation which may be enacted in pursuance
of sections 32(2) or 33(3) of the Constitution or any other relevant law, no person,
including the Minister, a member or employee of the board or the Department, or a
former member or employee of the board or the Department, mayÐ58
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(a)in any way disclose any information submitted by any person in connection
with any application for any licence, certi®cate or appointment under this Act;
or
(b)publish any information obtained in contravention of paragraph(a), unless
ordered to do so by a court of law or unless the person who made such
application consents thereto in writing.
(2) Any person who contravenes subsection (1) shall be guilty of an offence.
Repeal and amendment of laws
68.The laws mentioned in the Schedule are hereby repealed or amended to the extent
indicated in the third column thereof.
Short title and commencement
69.This Act shall be called the Lotteries Act, 1997, and shall come into operation on
a date ®xed by the President by proclamation in theGazette. 60
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SCHEDULE
Laws repealed or amended
No. and year of Act Title Extent of repeal or amendment
Act No. 44 of 1958 Post Office Act, 1958 The substitution for section 35 of
following section:
“Articles addressed to per-
sons conducting a lottery or
sports pool or dealing in in-
decent or obscene matters
35.When the postal com-
pany is satis®ed on enquiry or
by any advertisement, letter,
circular or other documentary
evidence that any person is
conducting or assisting as agent
or otherwise in conducting a
lottery or sports pool in contra-
vention of the Lotteries Act,
1997, or is dealing in indecent
or obscene matter, and is using
the services of the postal com-
pany for the purpose, the postal
company may detain or delay
all postal articles addressed to
such person (whether under his
own or under a ®ctitious or
assumed name) or his agent or
representative, or to any ad-
dress of any such person, agent
or representative without the
name of any person appearing
thereon, and all such postal
articles may be opened and
returned to the senders thereof
or otherwise disposed of as the
postal company may deem
®t.”.
Act No. 51 of 1965 Gambling Act, 1965(a)Amendment of section 1 by
the deletion of the de®nitions
of “lottery”, “prize”, “sport-
ing event”, “sports pool”,
“subscription” and “ticket”.
(b)Repeal of sections 2, 3, 4, 5
and 10.
(c)Amendment of section 8 by
the deletion of paragraphs(a),
(b),(c), (i) and (ii).
62

No. and year of Act Title Extent of repeal or amendment
Act No. 23 of 1982 Gambling Act, 1982 (Ciskei)(a)Amendment of section 1 by
the deletion of the de®nitions
of “lottery”, “sporting
event” and “sports pool”.
(b)Amendment of section 7 by
the deletion of subparagraph
(iii) of paragraph(c)of sub-
section (1) and subsection
(4).
(c)Amendment of section 9 by
the substitution for paragraph
(a)of subsection (1) of the
following paragraph:
“(a)grant such application
subject to such condi-
tions and restrictions as
the President[-in-Coun-
cil]may deem neces-
sary[, including a con-
dition requiring the
holder of a lottery li-
cence or a sports pool
licence to furnish secu-
rity in the amount
®xed by the President-
in-Council for the due
payment of prizes; or].
(d)Amendment of section 10 by
the deletion of paragraph(b)
of subsection (1).
(e)Amendment of section 12 by
the deletion of paragraph(c)
of subsection (2).
(f)Amendment of section 17 by
the deletion of paragraph(b)
of subsection (1).
(g)Amendment of section 18 by
the substitution for subsection
(1) of the following subsec-
tion:
“(1) No person shall
participate, and no licence-
holder or any person em-
ployed by him or her in
connection with the man-
agement, supervision, con-
trol or administration or
any activity authorized by
such licence shall permit
any person to participate,
in any game in a casino or
gaming room[or in any
lottery or sports pool] unless payment therefor is
in current money or by
cheque: Provided that the
licence-holder may, at his
or her discretion, grant
credit facilities to any per-
son who furnishes a satis-
factory guarantee of pay-
ment.”.
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No. and year of Act Title Extent of repeal or amendment
(h)Amendment of section 19Ð
(i) by the deletion of sub-
paragraph (iii) of para-
graph(a)of subsection
(1);
(ii) by the deletion of para-
graph(c)of subsection
(1);
(iii) by the substitution in
subsection (1) for para-
graph(d)of the follow-
ing paragraph:
“(d)perform any act
with the object of
acquiring or assist-
ing any other per-
son to acquire from
any source in
Ciskei or elsewhere
any ticket in an
unlicensed game of
chance[, sports
pool or lottery];”;
(iv) by the substitution in
subsection (1) for para-
graph(e)of the follow-
ing paragraph:
“(e)print or publish,
either in a newspa-
per, periodical pub-
lication or any
printed document,
any notice or adver-
tisement of any
unlicensed gaming
house, gaming ac-
tivity[sports pool
or lottery];”; and
(v) by the substitution in
subsection (1) for para-
graph(g)of the follow-
ing paragraph:
“(g)distribute or cause
to be distributed or
deliver or cause to
be delivered to any
person any hand-
bill or entrance
form or other docu-
ment conveying in
print, writing or
other way, notice of
or information with
regard to any unli-
censed gaming-
house,[sports
pool, lottery]or
place where games
of chance are
played or any activ-
ity prohibited by
this Act is per-
formed; or”.
66

No. and year of Act Title Extent of repeal or amendment
(i)Amendment of section 24 by
the deletion of paragraph(b)
of subsection (2).
(j)Amendment of Part A of the
Schedule by the deletion of
items 2 and 3.
(k)Amendment of Part B of the
Schedule by the deletion of
the last two items.
Act No. 14 of 1984 State Lotteries Act, 1984 (Ciskei) The whole.
Decree No. 14 of 1989 Lotteries Decree, 1989 (Transkei) The whole.
68