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National Development Agency Act

REPUBLIC OF SOUTH AFRICA
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. . .. . .. . . 1
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GOVERNMENT GAZETTE
STAATSKOERANT
VAN DIE REPUBLIEK VAN SUID-AFRIKA
Re.

30 No. 1s427GOVERNMENT GAZETTE. }4 NOVEMBER 1997
Act NO. 37, 1997LOTTERIES .+CT. 1997
(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 m a result of such revocation or variation.
(4) The Auditor-General or any person designated by him or her shall audit all
tinancial statements reflecting expenditure from the sum allocated for the development 5
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 10
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
~ffairs. in the national sphere of government
to distribute the allocated sum fairly and equitably omongst all persons who meet the
prescribed requirements. Ij (~) Th e dist~butlng ~gency shall consider applications for grants and may, subject [0
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
LMinister after consultation with the Ministers responsible for arts, culture. science and
technology. and environmental affairs. in the national sphere of government. or by the 20
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 vaned by the Minister. and no claim
shall arise as a result of such revocation or variation.
25
(4) The Auditor-General or any person designated by him or her shall audit all
financial statements reflecting 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 35
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 40
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 specific purpose
identified 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
45
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
financial statements reflecting expenditure from the sum allocated for the specific
purpose identified by the Minister after consultation with the board.
(6) Any juristic person meeting the prescribed requirements may in the prescribed
50
form apply to the distributing agency for a grant.
i;::

~-l No. I 8427GOVERNMENT G.AZETTE. 14 NOVEMBER 1 Y97
Act No. 57.1997LOTTERIES ACT. 1997
Payment of allocations
32. (1) The Minister shall,
after consultation with the board. in respect of any
allocation awarded for a specific 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 m he or she deems 5
fit, in addition to conditions
requiring—
(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
ogency. as the case may be. may impose:
(b) that a percentage of the allocXion at the disposal ot’ the distributing agency for 10
grants determined by the board or the Minister shall
be allocated to recipients
in a specified 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 fill
amounts distributed: and ]j
(d) any recipltnt 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 satisfied that
any such juristic
person is competent to allocate the amounts equitably
among all the members it 20
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. 25
(4) In performing his or her functions in terms of subsection (3). the .Minister shall—
(a) consult wtth the board and the relevant distributing agency before giving any
directions to that distributing agency; and
(b) take into ~ccount—
(i) general development in the Republic, with specific reference to the 30 re~lonal. economic+ financial, 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.
including—
(m) the number of lottery tickets sold in each province: 35
( bb) the population of each province; and
(cc) the financial 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
40
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
shall—
(u) consult with the board and that distributing agency before any such
prohibition is imposed; and
– 45
(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 50
to the board out of the money in the fund held under section
26(2) in respect of the
boards expenses.

3-! No, 1s427 GOVER,NYIE!NT GAZETTE, [ 4 NOVEMBER 1997
Act No. 57.1997 LO’M_ER[ES ACT. 1997
(2) The payments shall be Of such amounts as the Minister deems sutiicient for
meeting the payments made or to be made under sections
6( 1 ) and 7(2). or my 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 5
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.
PART II
OTHER LOTTERIES
CHAPTER 1
Lotteries incidental to exempt entertainment, private lotteries, society lotteries and
promotional
cotnperitions
Lotteries incidental to exempt entertainment
I ()
[5
36. ( 1 ) A lottery conducted m an incident of an exempt entertainment shall not be
unlawful if—
(a) all the proceeds of the entertainment. including the proceeds of the lottery.
after deducting—
(i) the expenses of the entertainment. excluding expenses incurred in 20
connection vith the lottery:
( ii) the expenses incurred in printing tickets in the lottery and advertising
of
that lotte~: and
(iii) such sum. if any. nor exceeding the prescribed amount for any expenses
incurred in purchasing prizes for the lottery.
25
are utilised for the benefit 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 30
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. 35
(2) For the purposes of subsection ( 1 ) ‘-exempt entertainment” means a bazaar, sale.
f~te, dinner. dance. sporting event or other entertainment of a similar character.
Private lotteries
37. (1) A private lottery shall not be unlawful
if—
(a ~ all the proceeds. after deducting only expenses incurred for printing and 40
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
devoted—
(i) to the provision of prizes; 45
(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
than— 50
I

36 .X() I w?? GOVERN?VIEPJT GAZETTE. 14 NOVEMBER 1997
.ct No. 57, 1997
(1’)
((i)
(e)
(j)
(g/
(/1)
(i)
(ii)
LOTTERIES ACT. 1997
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
such announcement or advertisement
of the Iotterv as is contained in the 5 . text printed on the tickets. it’ any:
no person is employed
for reward in any form whatsoever in connection with
the conduct
of the lottery:
no
ticket in the lottery is sent rhrough the post;
the total value
of the tickets or chances sold or to be sold or the total v:due of 10
the prizes in that lottery is not more [ban the prescribed amount determined by
the Minister in consultation ~vith the board;
the sale
of tickets in the lottery is confined—
(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 15
club. also to any other person who is on the premises of such club It ~he
time of sale:
it is conducted for members of a society established and conducted for
purposes not connected with lotteries. gambling or betting; and
~ person purchasing a ticket for a private lottery does not SOLeIy by purchiising 20
that ticket become a member of the club or society which conducts th:~t Iottel-)
or on whose behalf that lottery is conducted.
(2) For the purposes of this section each local or attiliated branch or section or brxwh
of a society shall be regarded as a distinct society.
(3) The board may determine the maximum number and frequency of private lotteries
25
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 societv lottery shall not be unlawful if—
30
(a)
(b)
(c)
(d)
(e)
(f)
(g)
it is ~onduc~ed only in the Republic:
the society for whose benefit 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);
35
the society lottery is conducted in accordance with a scheme approved by that
society and the board;
that society is registered with the board in terms of section 41;
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
40
amounts:
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 to- 45
(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 50
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:
,
the society lottery is conducted strictly in accordance with the rules referred to
in section” 53: 55

38 No. I W27GOVERNMENT GAZETTE, 14 NOVEMBER 1997
,Act so. 57.1997LOTTERIES ACT. 1997
(b) 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. m~keted, promoted or sold
other than in the prescribed
area: wrd
(j) the lottery is not advertised. marketed or promoted jointly with another 5
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 is—
(a) a member of [he society on whose behalf the lottery is conducted, acting in 10
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) certified 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 15
or her employment.
Frequency of society lotteries
40. ( 1 ) The Minister may prescribe—
(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 20
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. 25
(2) .Anvthing prescribed under subsection ( 1 ) may make different provision for
different &ses or circumstmrces.
CHAPTER 3
Functions of board in respect of society lotteries
Registration of societies
30
41. ( 1 ) An application to the board for the registration of a society shall—
(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 35
(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 40
approved by the board
unless—
(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 satisfied that— 45
(i) any person who will be conducting a lottery on behalf of the societY is a
fit 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;
50
4. .

40 No. I 8427
GOVERNMENT GAZETTE. 14 NOVEMBER 1997
Act No. 57, 1997LOTTERIES . CT, 1997
(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 otice 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: 5
(vi) every lottery conducted on behalf of the society within the last five years
has been properly conducted to the satisfaction of the board:
(vii) the society has not failed to comply with
i requirement imposed under
section 38,
44.45 or 46;
(viii) if the society lottery is to be conducted by a lottery manager. that that 10
lottery manager has provided security as prescribed by the Minister:
(ix) no actor 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
caused—
( L7a) the registration of another society to be refused or revoked as a 15
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. 10 be
improperly conducted: and
(x) the scheme attached to the application for registration. or any other 20
scheme subsequently approved by the societ!’ under section 3S( c). is
lawful and will be run in xcordance with sound tinancial principles and
methods.
Revocation of registration
42. The board— 25
(a) shall revoke the registration of a society if the society requests the board to do
so: and
(b) ma) revoke the registration ot’ ~ society it’ the society has failed to compi}
with any requirement contained in section 4 1(3). 44.45 or 46: Provided that—
(i) the registration shall not be revoked without giving the society an 30
opportunity of being heard: and
(ii) the society shall be notified in writing of the revocation and the grounds
there for.
Fees and levies
43. A society registered under this Chapter shall pay to the
board— 35
(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. ( ] ) Any society registered under section 41 shall— 40
(a) notify the board in writing ot’ 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 bored in writing of any amendment Or
substitution of the scheme contemplated in section 38(c);
45
(c) within three months after the completion of a society lotte~, 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
50
less than five years after the date of the lottery.
(2) Any notification 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, in
I
t.,

42 X(). 1s427
GOVERNMENT GAZETTE. 14 NOVEMBER 1997
i4ct No. 57, t997 LOTTERIES,CT. 1997
respect ofa Iottery conducted in accordance with the scheme as modified. 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. j
Control of registered societies
45. The board
ma? require a society registered under section 41 or a society that has
applied for such
reg]stration—
(~) 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; i o
(b) to allow any person authorised by the board thereto. to inspect and take copies
ot’ any documents of the society, including any information kept by the societ!
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 15
information in a visible and legible form and to inspect the operation of an}
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 [otter!.
Audit of society lottery
20
46. ( 1 ) A society shall submit to the board financial 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 199 I ), together with
a report by that wditor on such statements.
(2) The financial statements referred to in subsection (1)
shall— -1->-.
(a) be submitted to the board within three months of the end of the year in whi~h
the lotteries to which such statements relate, were held; and
lb) comply with generally accepted accounting principles and any other
directions that may be
given by the board as to the information to be contciined
in such statements. the manner in which such information is to be presented or 30
the methods and principles according to which such statements are to be
prepared.
(3) The report of the nuditor referred to in subsection ( 1), shall state whether in the
said auditor’s
opinion—
(a) the financial statements have been properly prepared in accordance with the 35
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 financial statements:
Provided that if the said auditor is unable to obtain all the information and
explanmions
that, to the best of his or her knowledge and belief. are necessary for the purposes of the 40
audit. his or her report shall state accordingly.
(4) For the purposes of this
section—
(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. 45
Certification of lottery managers
47. ( 1 ) An application by a person to be certified 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
include—
(a) sufficient information to fully identify the applicant; 50

44 N(), I WY GOVERNhHNTGAzETTE. 14 NovENIBER 1997
Act No. 57.1997LOTTERIES .ACT. 1997
(b) information in respect of its shareholders or the persons in any other way
controlling
it. if the applicant isajuristic person. oracurnculum vitae if the
Ipplicant is a natural person: and
(c) theapplicant’s physical address. (~) A fee determined by [he board shall & payable when the application is made. ~
(3) The board shall subject to the provisions of this section grant a certificate to m
applicant certifying him or her or it as a lottery manager.
(4) A person shall not be granted a certificate under this section. if in the opinion of the
board—
(a) any person who would be likely to manage or in any other way control the 10
business or any part of the business of
managing lotteries under the certificfite
is not a fit and proper person to do so:
(b) zny person for whose benefit that business would be likely to be carried on. is
not a fir and proper person to benefit from it:
(c) any information given by the applicant to the board in or in connection with 15
the application is false in a material respect:
(d) the applicant does not have the appropriate knowledge. experience (lr
resources available to manage the society lottery;
(e) in the past the applicant acted in any way which caused harm or could hai e
caused harm to— 20
(i) any lottery which he or she was conducting:
(ii) the society on whose behalf he or she was conducting a [otter}: or
(iii) the
integnty of society lotteries in general; or
(J7 the applicant fails to meet any requirement prescribed by the Minister.
[5) If the board refuses to grant a certificate, the board shall notify the applicant in 25
writing of the refusal znd the grounds for such refusal.
(6) If the board grants a certificate. the holder of the certificate shall in writing inform
the board of any change to the information supplied to the board in terms of subsection
( I ) at lemt seven days before that change comes into effect.
Conditions of certificate :()
48. .A certificate contemplated in section 47 shall. subject to this Chapter. contain
conditions aimed
at—
(a ~ protecting the interests of any society on behalf of which the holder of the
certificate might conduct a lottery, including the provision of security:
(b) protecting the interests of participants in any lottery to be conducted by the 35
holder of the certificate: and
(c) ensuring proper management of a lottery by the holder of the certificate.
Variation of conditions of certificate
49. ( 1 ) The board may. after giving the certificate holder an oPPofiunitY Of being
heard. vary any condition in a certificate. 40
(2) If the board varies a condition under this section, the board shall give notice in
writing of the variation to the certificate holder at the physical address furnished by the
certificate holder in terms of section 47(
I )(c J.
(3) The variation of a condition shall take effect on 1 date stipulated in the notice
contemplated in subsection (2). 45
Period of validity of certificate
50. A certificate shall be valid for a maximum period of three years or until it is
revoked by the board during such period.
Revocation of certificate
51. ( 1 ) The following shall constitute grounds for the revocation Of a certificate 5~
contemplated in section 47:

46 No. 18427GOVERNMENT GAZETTE. l-l .NOVENIBER 1997
Act No. 57, 1997LOTTERIES ACT. 1997
(a) If the certificate holder is no longer a fit 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. incmceration
in a prison or other institution, or for any other valid reason;
(b) if the certificate holder allows any person or body to derive a benefit from a 5
lottery contrary to the provisions
of this Act;
(c) if any information given by the certificate holder to the board in connection
with the application for the certificate was false in
a material respect;
(d) if the certificate holder contravenes or fails to comply with a condition in the
certificate or a provision of this Act; or
10
(e) if the certificate holder is convicted on a charge of theft. fraud. forgery or
uttering a forged document. perjury. an ofience in terms of the Corruption Act.
1992, or any
offence involving dishonesty.
(’2) If the board is satisfied that grounds exist for the revocation of a certificate
contemplated in section 47. it
shall in writing notify the certificate holder of the 15
existence of those grounds and call upon him or her to furnish reasons. within seven
days, as to why the certificate
shouid not be revoked, failing which the ceflifi~ate 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 20
certificate holder has conducted lotteries of the fact that the certificate granted to thfit
certificate 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 certificate holder as
contemplated in subsection (2).
(4) If reasons are furnished by the certificate holder as contemplated in subsection
(2). 25
the board shall not revoke the certificate without having given due consideration to such
reasons.
(5) If the board revokes a certificate under this section. the board shall give written
notice of the revocation and of the grounds for the revocation to the certificate holder
and
all societies on vhose behalf the certificate holder is known to have conducted 30
lotteries.
(6) The revocation of the certificate shall
t~ke etiect 2 [ days after the date of the notice
in terms of subsection (5).
Control of lottery managers and audit
52. The provisions of sections
44( I )(c) and (d). 45 and 46 shall apply rmmris 35
murcrrrcr’is to 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). 40
(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 certified in terms ot’
section 47 and shall be authorised in writing by the governing body of the society to act
as the person conducting that society !ottery.
(b) Every ticket distributed or sold. shall specify the name and address of the person 45
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.
50
(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,

48 NO. I X427
GOVERNMENT GAZETTE, 14 NOVEMBER 1 W7
Act No. 57, 1997LOTTERIES ACT, 1997
(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 R 1 000000 per year per society.
(k) The total value of the tickets sold in any one society lottery shall not exceed the 5
prescribed amount.
(i) The total value of the tickets sold in afl 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. 10
(k) No chance or opportunity to take part in a society lottery shall be sold other than
by way of a ticket.
(/) 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 15
exceed whichever is the lesser
~f—
(m) the expenses actually and necessarily incurred; or
(bb) whichever of the amounts specified in subparagraph (ii] applies.
(ii) The amounts referred to in subparagraph
(i)(bb) are—
(m) where the proceeds of the lottery do not exceed the prescribed amount, such 20
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 met-
(act) by the society on whose behalf the lottery is conducted: or 25
(bb) by any beneficiary 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 30
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). ‘“beneficiary of the Iotten”’
means a person or body, other than the society on whose behalf the lottery is conducted.
to whom or for whose benefit any of the proceeds of the lottery. other than amounts 35
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 January—
(i) the period commencing on such other date and ending on the last day of the 40
next December. shall be deemed to be the first 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.
45
Promotional competitions
54. (1) A promotional competition ihall not be unlawful if—
(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 conducted— 50
(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 55
consideration for the right to compete; and

50 No. I X427 GOVERNMENT GAZETTE. 14 NOVEMBER I ~)Y7
Act No. 57.1997LOTTERIES ACT. 1997
(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) ~he promotional competition or any conduct under it is not substantially
comparable
to—
(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;
, (K) 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
b}
the person for whose benefit 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
benetit
of more than one person. the maximum vtilues 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 etfect
of promotional competitions on the National Lottery, lotteries incidental to an exempt
entertainment and society lotteries. make regulations in respect of promotional
competitions—
(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 wa>
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
of—
(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
R 1000 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 specified
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 R
~ 000000. the maximum number of prizes in a
calendar year and the nature of prizes in respect of any specific promotional
competition or category of promotional competitions;
(d) notification of the board of every promotional competition. and the conditions
and requirements in respect thereof, including the information required in
respect of that notification and the payment of a fee to the board in respect of
the processing of that notification;
(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;
5
10
15
~o
25
30
35
40
45
50
55

52 No. 1 W27 CJOVERNMENT GAZETTE. !.l NOVENtBER IW7
:ct Nb. 57. 1997 LO’M’ERIES .-lCT. 1997
(J7 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
(,?) the conditions Or circumstances under which the board or any person
designated by it may without consent of the person who conducts the 5
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 the Ga;erte 10
declare a promotional competition to be unlawful.
(5) Any person conducting a promotional competition which in terms
ot’ 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 15
of that competition. and any person who fails to comply with this subsection or m
instruction thereunder is guilty
of’ an offence.
CHAPTER
4
sports pooh
Licence to conduct sports pools 20
55. ( 1 ) The Minister may. after consultation with the board. by Iicence authorise the
licensee to conduct
a national sports pool: Provided that the licence shall specify the
sports pools. or descriptions of sports pools, the conducr of which it authorises.
(2) The power of the Minister to prescribe the percentages in terms of section 26(3 i
may be exercised so as to make different provision in relation to sports pools. ~j
PARF 111
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
30
connection with any trade or business or the sale of any article to the oublic—
(a J any competition or lottery other than one authorised by or under this Act in
which
prizes are offered for forecasts of the result of either—
(i) a future event; or
(ii)
a past event. the result of which has not yet been ascertained or is no[ > et 35
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 con[em- 40
plated in section 54(4). –
General offences
57. (1) Any person who-
(a) participates in; or
(b) conducts, facilitates, promotes or derives any benefit from a lottery. 45
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 who-
(a) contravenes or fails to comply with any provision of this Act; 50

34 No. 18427GOVERNMENT GAZETTE. 14 NOVEMBER 1997
Act No. 57, 1997LOTTERIES ACT. 1997
(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 figure on any ticket or any other 5
document or thing pertaining to any lottery or promotional competition:
(e) obtains any direct or indirect financial 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
(j” sells a ticket— 10
(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: 15
(iv) on credit or with the tinancial 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 cm an>
outcome of any lottery unless authorised by or under this Act or an} other I:}w. 20
shall be guilty of an otlence.
Offences relating to National Lottery and sports pools
58. ( 1 ) Any person who—
(a) advertises or offers the opportunity to participate in a lottery, promotional
competition. competition or game of another description and who
gives. by 25
whatever means. a false indication that it is a lottery, competition or game
forming part of, or is othemise connected with, the National Lottery or is a
sports pool licensed in terms
of section 55:
(b) with the intent to defraud. thlsel} makes. alters. forges. utters. passes or
counterfeits a N’ational Lottery ticket or sports pool ticket; 30
(c) influences or attempts to influence the winning of a prize through the use of
coercion. fraud or deception. or through tampering with lottery or SPOrM POOI
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. 35
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 40
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
regarding—
(a) the conduct of the National Lottery or sports pools, including— 45
(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 disqualified from
participation;
(iii) the places where or circumstances or manner in which tickets or chances 50
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:

56 No. I S427GOVERNMENT GAZETTE. 14 NOVEMBER 1997
.ct No. 57.1997LOTTERIES ACT. 1997
(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
refened 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 1 of this Act;
and
(b) the making of oral representations as contemplated in section 20(1 )fb).
5
Regulations in respect of lotteries incidental to exempt entertainments, private and 10
society lotteries
61. ( 1 ) The Minister may. with the concurrence
of the board. make regulations regarding the conduct Of lotteries incidental to exempt entertainments. priv~te iotteries
and society lotteries.
including—
(a) the nature and requirements of my scheme contemplated in section 38(c): i 5
(b) the persons or categories of persons to whom and by whom tickets or chances
in a lottery may or may not
be sold:
(() the circumstances in which tickets or chances maybe sold and persons may be
invited to purchase tickets or chances:
(d) the minimum age at which mty person may buy a ticker or chance: 20
(e) any information which shall. or shall not. appear on a ticket;
(~) the manner in which a lottery may be advertised;
(s) 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 25
in order to ~chieve 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
diftkrent provision in relation to ditierent cases or different circumstances.
Penalties
62. Any person convicted
of an offence in terms of this Act shall be liable to a tine or 30
to imprisonment or to both a fine 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 35
64. (1) Every valid Iicence for—
(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 40
section 65, or issued in terms of the Gaming and Betting Act. 1989 (Act No.
39 of 1989)
(Bophuthatsw~na).
shall at a date determined by the Minister by notice in the Ga:ette cease to be valid.
(2) All unexpended money in—
(u) the Distribution Account refereed to in the State Lotteries Act. 1984 (Act No, 45
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.

58 !-40. [s427 GOVERNklENT GAZETTE. 14 NOVEMBER IW;
Act No. 57.1997
LOTTERIES .ACT. 1997
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 person—
(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
(L) 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 ~fter 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 tinartcial 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 the Ga:erft’.
which date shall be not later than seven days prior to the date on which tickets for the
National Lottery are sold for the first time.
(4) The .Minister or the board may at any time and without any prior notice withdml~
the registration in terms of subsection (2) of any juristic person if in the Ministers or the
board’s opinion it is desirable to do so.
(5) NO right other than M provided for in subsection (3) and no legitimate expectation< shall accrue M a result of registration in terms of this section. (6) A juristic person who in terms of’ subsection ( 1 ) has applied for registration or u ho in terms of subsection (2) has been registered. shall provide the Minister or the bo:lrd 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 to— (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 first time table a report in Parliament on all matters provided for in this section, and if Parliament is not then in session, on the first 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 maybe 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, may— 5 [0 15 20 25 30 35 40 45 50 I i I 60 No. 18427 GO ERNNIENT G.AZETTE. I-J NOVEMBER l’j’~7 Act NO. 57.1997LOTTERIES ACT. 1997 (a) in any waydisclose anyinfomation submitted byanyperson inconnectif]n with any application for any licence, certificate or appointment under this Act: or (b) publish any information obtained in contravention of paragraph (a). unlm ordered to do so by a court of law or unless the person who made such 5 application consents thereto in writing. (2) Any person who contravenes subsection ( I ) shall be guilty of an offence. Repeal and amendment of laws 68. The laws mentioned in the Schedule are hereby repefiled or amended to the ex[ent indicated in the third column thereof. 10 Short title and commencement 69. This Act shall be called the Lotteries Act. 1997, and shall come into oper~tion on a date fixed by the President by proclamation in the Gaxrre. / j i ~ ..-+ . . . . ,. - ,_ .*,.. _+_+. +4.*.. x+,-., --- ------ --- ---- 62 ~c), I 8427 GOVERNNIENT GAZETTE. 14 NOVENIBER I Y’l; LO~ERIES ACT. 1997 Act No. 57.1997 sCHEDULE Laws repealed or amended GJmhllng .AcI. IL)65 ..irticles addressed to pm- om conducting J Iottw or ,ports pool or dealing in in- Iecent or nhscene matters I 64 No, [$+27GOVERNMENT G.AZETTE. 1-+ NOVEMBER IW7 Act No. 57.1997 LOTTERIES ACT, 1997 0. and year of Act ‘l-we Extent of repeal or amendment c1 N(). 23 of [982 Gambling Aw 1’)S2 (Ciskl) fCI/ .Wnendment of wxon I hy the delct]on ot the detlnl[]ml 01 “lottery”. “sport]n~ cent” Jnd “~por[s pool” (h) .lmendment of wction 7 b! the Jele[im of ufrpat-:]gtmph I III I (>t pwagraph ([) {It uh-
Wx[l(ln ( I ) Jnd >Ubwc[l(ln
1+).
(<) .Amencimen[ t)t WCIIOII ~) h [he sui7 ][ullon (or por:~gr:q~ll (LZJ ot uhccllon ( 1 ) of rhc follovIny pwtyaph: ‘“([l / :rJI1[ uch 3ppil~J[10n .L@W [[) >uc’h L’)I1dl –
LloTl Jnd r? rlc’[ion. J.
the Pr-cs!dcn[[-in-(.’{)ijn-
d] Ma! dwm neues-
w}[, including it con-
dition
requirinq the
holder
of u lottcr~ li-
cence or 2 sports pool
licence to furni>h ecu-
rity in the amount
fiwd by the President-
in-Council for the
due
payment
of prizes: or)
IJj .hall
pwtlcip~te. and m> llccncc-
hokkr or my per${]n sn3-
ployed by hlm or her III
connection cv[[h [he m.lr I-
qemenl. 5uperl] on. C(>IV
trol or odmin!s[ra[lun m
my ac[iv][y au[hor]zcd by
such Iicence shall perrnt[
any person to pwrK]p Me,
In dny game in a c:h Ino or
gaming room [or in an?
lottery or sports pool] unless paymen( thcrckjr IS
10 current mcrnq or hy
chcque: Pru KM [ha[ [he
Iicence-hulckr mdj. :11 Ill> or her dlcrct) on. :mn[ credit f;wllilie ((I Jn~ pcr- (~n who fu{-nt he :1 ; III- t XLO1 } :Llill :LI1[CC ,)( p.!} ment “
I

66 No, 1s427 GoVERNhlENT GAZETTE. I -1 NOVENIBER I q~~
LO~ERIES ACT. 1~~~ Act So. 57.1997
TltlcExtent of repeal or amendment
L and war of .$~t (/, ) .Amcndmcn[ of vxtion 19-
1
I
I
pr,nt, wrmng or other way, notice Of or in~orrnaoon ~l(h regard [o wry unll- ~~nsed gaming- housc [sports ~()()l. Iotteryl or pIacc where games of chance are
~luYed or my .K[l- i~y pr(~hlhted h~ [his ,lcl Ii per- (o~ed: or’”. 1

. -. – ——— ———– ._ . . . . . . . . . .
68 No. I 8427 GOVERNYIENT GAZETTE. 1-1 NOVENIB1;R 1‘~~7
LoTTERIES .ACT. 1997 .Act No. 57, 1997
No.
and year of .$ct TMeExtent of repeal or amendment
(IJ .+mcndmen[ of WCIIUII 24 h>

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