Bulk SMS Mobile industry news

The South African National lotteries board announced an investigation into illegalSMS competitions where entrants are required to use their cell phones to enter the competition and are charged more than the normal cost of a sms.

According to the board mobile phone users may not be charged more than the cost of a normal SMS (R 1-50) to enter a competition.

The lotteries watchdog said it noticed an increase in illegal lotteries under the guise of a competition taking place.

Sershan Naidoo, NLB spokesperson said legitimate lotteries identified by the act included society lotteries run by non-profit organisations to raise funds, private lotteries among people who work or live together and promotional competitions conducted to encourage the sale of goods or services.

Lotteries where more than R10 000 would be raised through ticket sales or lotteries raising more than this amount at bazaars, dinners or similar events had to be registered with the National lottery board.
(extract from IOL)

Comments:
In order to determine the definition of a lottery visit the lotteries act (PDF document)

A lottery is defined as:
"Any game, scheme, arrangement, system, plan, promotional competition or device for distributing prizes by lot or chance and any game, scheme, arrangement, system, plan, promotional competition or device that the Minister may by notice declare to be a lottery"

It is therefore advisable to either consult with the NLB or a lawyer during planning of a SMS competition to ensure that you stay within the law.

Any lawyers around to comment about this?