Licensed private lotteries not unlawful.

§6

Summary

(1) A private lottery shall be deemed to be an unlawful lottery unless the promoter thereof has obtained a licence in respect of such lottery. (2) The following conditions shall be observed by the promoter in connection with the promotion and conduct of such lottery, namely :- (a) the whole proceeds, after deducting only expenses incurred for printing and stationery, shall be devoted to the provision of prizes for purchasers of tickets or chances, or, in the case of a lottery promoted for the members of a society, shall be devoted either to the provision of prizes as aforesaid or to purposes which are purposes of the society or, as to part, to the provision of prizes as aforesaid and, as to the remainder, to such purposes as aforesaid ; (b) there shall not be exhibited, published or distributed any written notice or advertisement of the lottery other than- (i) a notice thereof exhibited on the premises of the society for whose members it is promoted or, as the case may be, on the premises on which the persons for whom it is promoted work or reside, and (ii) such announcement or advertisement thereof as is contained in the tickets, if any ; (c) the price of every ticket or chance shall be the same and the price of any ticket shall be stated on the ticket ; (d) every ticket shall bear upon the face of it the name and address of each of the promoters and a statement of the persons to whom the sale of tickets or chances by the promoters is restricted, and a statement that no prize won in the lottery shall be paid or delivered by the promoters to any person other than the person to whom the winning tickets or chance was sold by them, and no prize shall be paid or delivered except in accordance with that statement ; (e) no ticket or chance shall be issued or allotted by the promoters except by way of sale and upon receipt of the full price thereof, and no money or valuable things so received by a promoter shall in any circumstances be returned ; and (f) no tickets in the lottery shall be sent through the post. (3) If any of the conditions specified in sub-section (2) is broken, each of the promoters of the lottery, and where the person by whom the condition is broken is not one of the promoters, that person also, shall, on conviction, be punishable- (a) for the first offence with fine which may extend to one thousand rupees, (b) for the second offence with fine which may extend to two thousand rupees, and (c) for any subsequent offence with imprisonment for a term which may extend to three months or with fine which may extend to five thousand rupees or with both : Provided that in any proceeding under this section, it shall be a defence for a person charged only by reason of his being a promoter of the lottery to prove that the offence was committed without his knowledge. Explanation.- For the purposes of this section- (a) the expression "private lottery" means a lottery in the State which is promoted for, and in which the sale of tickets for chances by the promoters is confined to, either- (i) members of one society established and conducted for purposes not connected with gaming, wagering or lotteries, or (ii) persons all of whom work on the same premises, or (iii) persons all of whom reside on the same premises, and which is promoted by persons each of whom is a person to whom under the foregoing provisions tickets or chances may be sold by the promoters and, in the case of a lottery promoted for the members of a society, is a person authorised in writing by the governing body of the society to promote the lottery ; and (b) the expression "society" includes a club, institution, organisation or other association of persons by whatever name called, and each local or affiliated branch or section of a society shall be regarded as a separate and distinct society.

(1) A private lottery shall be deemed to be an unlawful lottery unless the promoter thereof has obtained a licence in respect of such lottery. (2) The following conditions shall be observed by the promoter in connection with the promotion and conduct of such lottery, namely :- (a) the whole proceeds, after deducting only expenses incurred for printing and stationery, shall be devoted to the provision of prizes for purchasers of tickets or chances, or, in the case of a lottery promoted for the members of a society, shall be devoted either to the provision of prizes as aforesaid or to purposes which are purposes of the society or, as to part, to the provision of prizes as aforesaid and, as to the remainder, to such purposes as aforesaid ; (b) there shall not be exhibited, published or distributed any written notice or advertisement of the lottery other than- (i) a notice thereof exhibited on the premises of the society for whose members it is promoted or, as the case may be, on the premises on which the persons for whom it is promoted work or reside, and (ii) such announcement or advertisement thereof as is contained in the tickets, if any ; (c) the price of every ticket or chance shall be the same and the price of any ticket shall be stated on the ticket ; (d) every ticket shall bear upon the face of it the name and address of each of the promoters and a statement of the persons to whom the sale of tickets or chances by the promoters is restricted, and a statement that no prize won in the lottery shall be paid or delivered by the promoters to any person other than the person to whom the winning tickets or chance was sold by them, and no prize shall be paid or delivered except in accordance with that statement ; (e) no ticket or chance shall be issued or allotted by the promoters except by way of sale and upon receipt of the full price thereof, and no money or valuable things so received by a promoter shall in any circumstances be returned ; and (f) no tickets in the lottery shall be sent through the post. (3) If any of the conditions specified in sub-section (2) is broken, each of the promoters of the lottery, and where the person by whom the condition is broken is not one of the promoters, that person also, shall, on conviction, be punishable- (a) for the first offence with fine which may extend to one thousand rupees, (b) for the second offence with fine which may extend to two thousand rupees, and (c) for any subsequent offence with imprisonment for a term which may extend to three months or with fine which may extend to five thousand rupees or with both : Provided that in any proceeding under this section, it shall be a defence for a person charged only by reason of his being a promoter of the lottery to prove that the offence was committed without his knowledge. Explanation.- For the purposes of this section- (a) the expression "private lottery" means a lottery in the State which is promoted for, and in which the sale of tickets for chances by the promoters is confined to, either- (i) members of one society established and conducted for purposes not connected with gaming, wagering or lotteries, or (ii) persons all of whom work on the same premises, or (iii) persons all of whom reside on the same premises, and which is promoted by persons each of whom is a person to whom under the foregoing provisions tickets or chances may be sold by the promoters and, in the case of a lottery promoted for the members of a society, is a person authorised in writing by the governing body of the society to promote the lottery ; and (b) the expression "society" includes a club, institution, organisation or other association of persons by whatever name called, and each local or affiliated branch or section of a society shall be regarded as a separate and distinct society.

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