Business In Competitions

Turkleton

Basically I want to set up a business that just runs competitions,I dont want to go into detail as to what kind but basically I get the money in pay out one quarter of it in prize money,another quarter to prize winners charity of choice and half on costs and profit. However I have been told that this is not allowed as to do this kind of thing as you have to get a permit and donate everything to charity,Although I was thinkin their is surely a way to set up a business in this and pay tax etc.any advice or routes to research appreciated

antoinolachtnai

You would need to refer to the Gaming and Lotteries Act 1956. What you have been told is essentially correct although there might be a little wriggle-room, though not much. I assume that when you say 'competition' you essentially mean 'lottery'.

At this stage of the game, you are dreaming if you think you are going to get much traction only paying out one-quarter as winnings. The lottery games pay out 50 percent as winnings. Bookmakers pay out 80 percent or so.

You could probably come up with a structure to do what you want, but your ideas of margins are completely unrealistic. The charity would want a large split to be associated with the promotion, as well.