• No purchase necessary sweepstakes India

Hi, I am interested in gaining knowledge on the legality of no purchase necessary sweepstakes in India? Are cash prizes allowed and what exactly counts as consideration? For example, would an individual having to check a website or email inorder to know if they have won or not be, considered as consideration?
Asked 5 years ago in Business Law

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13 Answers

Yes, you need to check their website to keep yourself updated about the result.

Hope this helps.

Regards

Swarupananda Neogi
Advocate, Kolkata
2993 Answers
6 Consultations

A Sweepstakes is a campaign in which entrants can win a prize based on chance. No purchase, payment, or other consideration is permitted, and the winner is picked at random. The element of consideration must not exist in a Sweepstakes.

2)is advisable to have start and closure date for sweepstakes

 

3)

prize selection criteria should be mentioned

4) do not offer gifts that have health hazards .

5) detailed terms and conditions should be mentioned on website


6)

in case of Dr. KR Lakshmanan v/s State of Tamil Nadu, the Supreme Court of India held that gaming is an act or practice of gambling on a game of chance and the test of determining if a game is ‘gambling’, is whether dominant element is chance or skill.

7)  Hence, the test of determining if a game is ‘gambling’ is whether dominant element is ‘chance’ or ‘skill’. - that a game that does not involve skill or is a mixed game of chance and skill would not be treated as lawful in India.

8)

should be mentioned only those above 18 years should access the site .

9) Potential winners will be notified via e-mail address provided in their survey responses. Winners must accept a prize within one (1) week of notification via a response prize notification email in order to claim the prize. Winners who fail to respond or accept within the allotted time period forfeit their prize, and that you will perform another random drawing to select a replacement winner.

10) you should not offer more than Rs 2000 as cash prize 

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

Before we comments on legality of any business in India whether run online or offline, it's very essential to know full details. 

In general law of the land does not recognise any business especially online which has wagering in nature and allows money or rewards to participants without exercise of knowledge or skill on the subject. 

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

The sweepstakes is another bogus portal which attracts people towards it lot of false promises. 

There has been no such single incidence that anyone has won any prize announced by them so far.

They would induce you to buy more and more books with tall promises of assured prizes but everytime you will land only with buying big books to decorate your shelf or library. 

Even if you access to their website,  you may not find the desired details till the end.

 

Hence you may decide whether to save your time by stopping further activities with them or to waste your time,  money and energy by indulging in such useless activities. 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

In a sweepstakes contest the winner is determined by "chance" and not by "skill". These agreements are void being wagering agreements and are not enforceable by courts. 

No, an individual having to check the website or email would not be considered as consideration. 

Agam Sharma
Advocate, New Delhi
617 Answers
6 Consultations

In India, The Public Gaming Act, 1867 was enacted with the object of preventing

  • (i) gambling in a public place and
  • (ii) the keeping of the common gaming-houses and to provide for the punishment of public gambling and the keeping of common gaming houses.
  • The term ‘Gambling’ per-se has not been defined in the Public Gambling Act 1867 and the terms – gambling, gaming, betting and wagering are the terms which are often used synonymously, and of all ‘Gambling’ being regarded as embracing all the terms.
  • The term ‘Gaming’ too has not been defined under the Indian Gambling laws, however, an inference can be drawn from the English Betting and Gaming Act, 1960, wherein its is defined as “playing of a game of chance and skill combined, and a pretended game of chance and skill combined, but not any athletic game or sport”.

As per the Indian Contract Act, 1872: Section 30 says in this Section prevents any person from bringing a suit for recovery of any winnings won by way of a "wager." (An agreement which is based on a future uncertain event wherein the loss of one person is the gain of the other). Thus no claim for recovery of any winnings in lotteries, gambling or betting can be brought before the court. The position of law in India is such that it may be perfectly legal to buy a lottery ticket, but the winner of such a lottery will have no remedy against the lottery agency if the said agency refuses to pay the winnings.

 

For example, would an individual having to check a website or email in order to know if they have won or not be, considered as consideration?

If the facility is available to check online the the price and receive by email then you can check it.

Ganesh Kadam
Advocate, Pune
13008 Answers
267 Consultations

Hi 

In law, no purchase necessary sweepstakes is nothing but a lottery and hence comes under gambling act.

Please note that gambling including lottery comes under both state and central jurisdictions and the following laws are applicable

1) Under Liberalized Remittance scheme (LRS)  guidelines issued by RBI vide  G.S.R. 426(E) dated May 26, 2015 ,Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000.

2)  In case, you receive any winnings in Lottery Tickets/ Sweepstakes which are conducted in online/offline, outside of India, then the entire winning is treated as a consideration, and the same will be  taxed at a flat rate of  31.2% of winnings earned by participant under 194 B of income tax. 

 

3) So, whilst remittance of monies in such websites is a crime,  however mere checking a website or writing a email to such websites which offer No purchase sweepstakes ( Examples : The Balance Everyday Sweepstakes, Online-Sweepstakes.com etc) is not a criminal act under any Indian laws. 

Hope this information is useful.

 

 

 

Rajgopalan Sripathi
Advocate, Hyderabad
2173 Answers
394 Consultations

Sweepstakes fall under the gambit of gambling in India but few companies are running this business. Purchase of chances and if hit than cash prize.

Yogendra Singh Rajawat
Advocate, Jaipur
23081 Answers
31 Consultations

- A Sweepstakes is a campaign in which entrants can win a prize based on chance.

- Further no purchase, payment, or other consideration is permitted, and the winner is picked at random , and further the element of consideration must not exist in a Sweepstakes

- Further , you can check website or email for knowing the result of the same. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

No it doesn't sweep take

Prashant Nayak
Advocate, Mumbai
34515 Answers
249 Consultations

Sweepstakes fall under the gambit of gambling in India. The Public Gaming Act, 1867 has been enacted basically to prevent public gambling and not for managing or monitoring gambling. Gambling has not been defined by Indian Law. There is no exclusive ban on sweestakes in any state or gambling.

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

1. Yes cash prizes are allowed 

2. Any payment done for purchase of some asset or in return of buying something is consideration.

 

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

yeah that is allowed. Please elaborate upon which aspects you need legal inputs. India has a gambling act in place. 

Rahul Mishra
Advocate, Lucknow
14114 Answers
65 Consultations

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