Why are 'no purchase necessary' (NPN) entry routes still required in Northern Ireland but not in the rest of the UK? And what does CAP have to say about it?
The background
For most of the UK, the Gambling Act 2005, which came into force in September 2007, brought gambling regulation in line with modern practices. One of the significant changes introduced by the new law was that promoters no longer needed to offer a 'no purchase necessary' (NPN) entry route to prize draw promotions where a purchase is involved. Provided that the price of a product is not inflated and there is no additional charge to the consumer, then a free entry route is no longer required.
But the Gambling Act 2005 does not apply in Northern Ireland, which still operates under the old rule of preventing any form of purchase with a prize draw. So NPN entry routes are still required – or rather a mechanism by which consumers can enter a promotion without paying or by paying no more than the minimum unavoidable cost of entering (eg a first or second class letter, an email or a standard rate SMS). While there have been calls to review Northern Ireland's gambling laws for several years, no action has actually been taken on this front and promoters are still required to offer consumers an NPN entry route to prize draw promotions.
The development
The Committee of Advertising Practice (CAP) issued new guidance on 15 March 2017 which explains when a promotion will be considered an illegal lottery under the Gambling Act 2005. The guidance also refers to the position in Northern Ireland.
Previous CAP guidance noted that the Gambling Act 2005 did not apply in Northern Ireland, but went on to state that 'in practice under EU law, there is no longer likely to be a requirement to always offer consumers an NPN route'. While this appears to suggest that free entry routes are not required in Northern Ireland, the opposite is true and CAP were likely comparing the position in Northern Ireland to that in the rest of the EU. CAP's new guidance confirms that offering NPN routes to prize draws is 'likely to remain commonplace' in Northern Ireland and recommends promoters seek legal advice before running promotions there.
For most promoters running UK-wide prize draws, the simplest solution will be to exclude Northern Irish residents from the promotion. The alternative is to set up an NPN route for Northern Ireland only, although this is likely to add a layer of complexity for promoters.
Why is this important?
CAP's new guidance is useful, if only to remind good advertising lawyers of the quirks of the archaic lottery regulation still applying in Northern Ireland (12 years after the rest of the UK had sorted this out!).
Any practical tips?
Regulation of Gambling in Northern Ireland 12 Work is currently under way to modernise the law in the Republic of Ireland; in March 2019 the Minister of State with special responsibility for. The Department for Communities are seeking views on the regulation of gambling in Northern Ireland. This consultation paper has been drafted to seek public opinion on the current gambling law in Northern Ireland, and to seek views on whether changes are now necessary to ensure Northern Ireland has a more flexible and modern licensing framework capable of responding to the many societal.
Always consider which jurisdiction your promotion may end up appearing in, and who exactly you can safely target. The Northern Irish NPN anomaly for prize draws is a classic, and one promoters can easily forget about. So if you are running a prize draw in Northern Ireland, either (a) clearly exclude Northern Irish residents or (b) find a workable NPN for the promotion in Northern Ireland.
As bookies reopen their doors today, a poll reveals more than 90 per cent of people want online gambling stakes and prizes limited, with almost universal support for betting companies to contribute to addiction treatment.
The research was carried out on behalf of social policy charity CARE NI which is campaigning for gambling law change.
The mainstream Christian charity provides lobbies 'to bring Christian insight and experience to matters of public policy and practical caring initiatives'.
Northern Ireland's gambling legislation dates back to 1985 and critics argue it is not in line with with the digital age.
According to the Department for Communities' own 2017 research the north has a problem gambling prevalence rate of 2.3 per cent - more than four times higher than England where it stands at 0.5 per cent. In Scotland the figure is 0.7 per cent and in Wales 1.1 per cent.
Why are 'no purchase necessary' (NPN) entry routes still required in Northern Ireland but not in the rest of the UK? And what does CAP have to say about it?
The background
For most of the UK, the Gambling Act 2005, which came into force in September 2007, brought gambling regulation in line with modern practices. One of the significant changes introduced by the new law was that promoters no longer needed to offer a 'no purchase necessary' (NPN) entry route to prize draw promotions where a purchase is involved. Provided that the price of a product is not inflated and there is no additional charge to the consumer, then a free entry route is no longer required.
But the Gambling Act 2005 does not apply in Northern Ireland, which still operates under the old rule of preventing any form of purchase with a prize draw. So NPN entry routes are still required – or rather a mechanism by which consumers can enter a promotion without paying or by paying no more than the minimum unavoidable cost of entering (eg a first or second class letter, an email or a standard rate SMS). While there have been calls to review Northern Ireland's gambling laws for several years, no action has actually been taken on this front and promoters are still required to offer consumers an NPN entry route to prize draw promotions.
The development
The Committee of Advertising Practice (CAP) issued new guidance on 15 March 2017 which explains when a promotion will be considered an illegal lottery under the Gambling Act 2005. The guidance also refers to the position in Northern Ireland.
Previous CAP guidance noted that the Gambling Act 2005 did not apply in Northern Ireland, but went on to state that 'in practice under EU law, there is no longer likely to be a requirement to always offer consumers an NPN route'. While this appears to suggest that free entry routes are not required in Northern Ireland, the opposite is true and CAP were likely comparing the position in Northern Ireland to that in the rest of the EU. CAP's new guidance confirms that offering NPN routes to prize draws is 'likely to remain commonplace' in Northern Ireland and recommends promoters seek legal advice before running promotions there.
For most promoters running UK-wide prize draws, the simplest solution will be to exclude Northern Irish residents from the promotion. The alternative is to set up an NPN route for Northern Ireland only, although this is likely to add a layer of complexity for promoters.
Why is this important?
CAP's new guidance is useful, if only to remind good advertising lawyers of the quirks of the archaic lottery regulation still applying in Northern Ireland (12 years after the rest of the UK had sorted this out!).
Any practical tips?
Regulation of Gambling in Northern Ireland 12 Work is currently under way to modernise the law in the Republic of Ireland; in March 2019 the Minister of State with special responsibility for. The Department for Communities are seeking views on the regulation of gambling in Northern Ireland. This consultation paper has been drafted to seek public opinion on the current gambling law in Northern Ireland, and to seek views on whether changes are now necessary to ensure Northern Ireland has a more flexible and modern licensing framework capable of responding to the many societal.
Always consider which jurisdiction your promotion may end up appearing in, and who exactly you can safely target. The Northern Irish NPN anomaly for prize draws is a classic, and one promoters can easily forget about. So if you are running a prize draw in Northern Ireland, either (a) clearly exclude Northern Irish residents or (b) find a workable NPN for the promotion in Northern Ireland.
As bookies reopen their doors today, a poll reveals more than 90 per cent of people want online gambling stakes and prizes limited, with almost universal support for betting companies to contribute to addiction treatment.
The research was carried out on behalf of social policy charity CARE NI which is campaigning for gambling law change.
The mainstream Christian charity provides lobbies 'to bring Christian insight and experience to matters of public policy and practical caring initiatives'.
Northern Ireland's gambling legislation dates back to 1985 and critics argue it is not in line with with the digital age.
According to the Department for Communities' own 2017 research the north has a problem gambling prevalence rate of 2.3 per cent - more than four times higher than England where it stands at 0.5 per cent. In Scotland the figure is 0.7 per cent and in Wales 1.1 per cent.
The department held a public consultation last year on the issue, but the final report has not yet been published.
When polling company LucidTalk asked what best described their position, 92 per cent said maximum stakes and prizes online should be regulated by law, with only eight per cent saying there should be no limit.
Gambling Regulation Northern Ireland Tours
Meanwhile, 90 per cent either strongly support (68 per cent) or support (22 per cent) the idea of a mandatory levy for gambling firms, while just five per cent were either strongly opposed or opposed to the idea of the levy.
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There were 1,878 responses to the survey.
Public policy officer, Mark Baillie described current laws as 'hopelessly out of date'It has been suggested such charges are used to fund treatment of those with gambling addictions and for further research into the causes of problem gambling.
CARE NI, which provides the Secretariat to the new All-Party Group on Reducing Harm Related to Gambling at Stormont, today urged the NI Executive to prioritise addressing gambling law reforms.
Public policy officer, Mark Baillie described current laws as 'hopelessly out of date and belong to a different era where online gambling didn't exist'.
'Times have changed and the recent lockdown here in Northern Ireland has only increased the pressure on people with gambling addictions.
'The uncomfortable truth is that Northern Ireland has a real problem with gambling related harms and this means it's all the more urgent to reform our current laws.
'This polling very clearly shows doing so would be hugely popular with the general population with the clear majority supportive on stake and prize limits on online games regulated by law and a mandatory levy on betting firms.
'CARE NI responded to the Department of Communities consultation on problem gambling and we look forward to the results being published soon.
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'Our politicians must make this issue a priority and address the exploitation of vulnerable people thanks to a poorly regulated gambling industry.'
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