Don’t Be Caught Out by Office Sweepstake Rules

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With so many major sporting events taking place over the next couple of months, it’s likely that employees will be considering organising sweepstakes amongst their colleagues. So what are the rules? Workplace sweepstakes typically involve a scheme where those wishing to participate draw a team, horse or whatever from a hat and pay a sum of money. The person who selects the winner then receives all the money. This qualifies as a lottery under the Gambling Act 2005 and if run on a small scale within the workplace are classed as “work lotteries”. No licence is required to run this type of lottery but there are a set of rules laid down within the Gambling Act 2005 about how these lotteries must be operated. A workplace sweepstake must NOT:
  • Make any profits even for a charity or other fundraising purpose
  • Roll over into another week, event or sweepstake – each must be organised for a specific event and all proceeds distributed at the end of it
  • Be available to anyone who is not an employee, including friends, family, agency workers, contractors, customers, etc.
  • Be run off site or across multiple sites even if they are part of your Company
  • Be advertised anywhere outside the premises in which it is being run
  • Be organised during working time
Further guidance can be found on the < Go back

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