Homeowners Gambling Their Homes
Published on 21/08/17
There has since been an immediate rise in homeowners entering their hard earned properties into ‘house raffles’ and other various competitions, claims the Gambling Commission. This strange type of gambling involves homeowners offering their homes as a prize to people, who pay for raffle tickets, or paying a fee to enter a competition, the buyers are then entered into a draw, and a winner gets the house. Whilst this idea may seem like a great idea to make a profit in today’s bleak market, it has been advised that no gambling rules must be broken in the process.
Lately, homeowners have been attempting to sell their properties via diverse methods, ones that add a little bit of flavour to the selling process, rather than the typical method of selling a house. This trend has increased, whilst there has been a decrease in the amount of national house sales.
Purchasing a raffle ticket, or entering competitions for a fee, has become gradually popular for desperate homeowners whom wish to get rid of their property. It is common knowledge that today’s housing market has made selling homes rather difficult, so trying out a fun alternate method where chances of profit may be higher sounds great right? Well not for the Gambling Commission, who fear that many organisers are breaking the law, as their desperate schemes resulting in being an ‘illegal lottery’.
Such competitions consist of many willing participants purchasing tickets or paying a fee to enter a draw that is completely based on chance and luck, with a prize for the winner. Under strict gambling rules, these competitions must be organised and ran in a particular way, with licenses needed for organisers too. The Gambling Commission regulates every type of gambling within the UK, which also includes lotteries, what licenses are needed for. Other smaller lotteries, often for charity, can operate without needing licenses, but still have to adhere to basic rules.
The point is, whilst lotteries can be run for charities and non-profit organisations, they are not permitted to be used for private use, or for organisers wishing to gain any profit.
Last year was witness to licensed lotteries raise a massive £230 Million, of which were all for good causes, something that the Gambling Commission has put emphasis on, using gambling to promote good will, rather than illegal profit making.
Many homeowners have had large success from such draws and competitions, and have kept off the radar by entering their homes into ‘free draws’ or ‘prize competitions’, which don’t feature as part of gambling according to rules.
The Gambling Commission has been set to monitor such events, and will provide tips to people on the differences between lotteries, competitions and free draws, to ensure that no rules are being broken. They advise that legal help should be attended to before attempting to ‘gamble’ your home, so illegal lotteries are kept to a minimum.