Illegal unlicensed Facebook lotteries closed down

The Gambling Commission has today (2 February 2022) announced that, working in partnership with (a) UK law enforcement partners through the Government Agency Intelligence Network (GAIN) and (b) specialists from the social networking platform Facebook, it has succeeded in shutting down illegal lotteries operating on Facebook.

Its announcement reads as follows:

Partnership work successfully shuts down illegal Facebook lotteries

An investigation led by the Gambling Commission has seen the disruption of illegal lotteries operating on social media platform, Facebook.

Working with UK law enforcement partners through the Government Agency Intelligence Network (GAIN), and specialists from the social networking platform, the Commission’s probe focused on the operation of illegal and unlicensed lotteries given the risks they posed to consumers and vulnerable people.

The illegal lotteries, which offered a variety of cash prizes, children’s toys and clothing, saw two individuals identified for promoting illegal activity and removed from associated Facebook groups after being issued with cease and desist letters by the North East Regional Special Operations and South West Regional Organised Crime Units respectively.

Helen Venn, executive director of the Gambling Commission said:

“There were hundreds of people taking part in these lotteries but it was important to identify those who were organising and moderating them illegally. Working alongside our colleagues at Facebook and the police, we are pleased that key individuals have been identified and this type of activity, which only increases the risk of gambling harm, has been disrupted. Illegal lotteries, including those taking place through social media channels, will continue to be a focus for our enforcement work this year as we link up closely with platforms like Facebook to pinpoint not only the activity, but those behind it and those who are breaching gambling rules and social media standards.”

David Gill, GAIN Coordinator at the South West Regional Organised Crime Unit said:

“We know the actual winners in illegal lotteries, which often promise high value prizes and cash draws, are too often the people running them – and they are persistent in their attempts to keep operating. We will continue to support the Gambling Commission in targeting and disrupting people profiting from such illegal schemes. Work like this shows the value and absolute necessity of the full range of enforcement agencies working together as part of the GAIN network.”

Kevin Benson, GAIN Coordinator based at the North East Regional Special Operations Unit said:

“It’s important to acknowledge the harm illegal gambling can cause, especially when unregulated lotteries like these benefit from targeting some of the most vulnerable people in our communities, especially those caught up in a cycle of addiction. We will continue to work alongside our partners and help assist in the disruption of illegal lotteries and other gambling platforms.”

Ms Venn, who leads the Commission’s licensing, compliance and enforcement teams, added that many of these lotteries fail to give any funds to good causes, and consumers taking part do not benefit from legal protection.

We draw readers’ attention to the closely linked issue of prize draws, prize competitions and ‘house raffles’, in relation to which the Commission published a Customer Information Notice as recently as 26 January 2022, as explained in our website posting of 28 January, entitled Prize draws, prize competitions and ‘house raffles’ hit the regulatory headlines again.

UPDATE:

In its 3 May 2022 eBulletin the Gambling Commission reported as follows:

Proceeds of Crime Act Hearing Confiscates Almost £140,000

Economic Crime Officers with the assistance of colleagues from the Gambling Commission worked to ensure a man had to surrender tens of thousands of pounds.

In July 2020, an investigation into a 27-year-old man, from Middlesbrough, began as he was suspected of running illegal lotteries from his Facebook page.

The Commission provided a link to a Facebook posting by Cleveland Police on 8 April 2022, that states as follows:

Proceeds of Crime Act Hearing Confiscates Almost £140,000
Economic Crime Officers with the assistance of colleagues from the Gambling Commission worked to ensure a man had to surrender tens of thousands of pounds.
In July 2020, an investigation into a 27-year-old man, from Middlesbrough, began as he was suspected of running illegal lotteries from his Facebook page.
The man was running a substantial amount of lottery style services including ‘bonus balls’ and ‘raffles’ for his own personal gain with thousands of transactions going through his bank accounts. These types of lotteries are the preserve of charities and other ‘good causes’ and cannot be run for private or commercial gain unless they qualify as one of the ‘exempt’ class of lotteries in the Gambling Act 2005.
At a Proceeds of Crime hearing at the end of March, a forfeiture order was made for almost £140,000 held in bank accounts belonging to the man which were considered to be his personal profit from the lotteries.
Sgt Suzanne Boulton from the Confiscation Team said: “This was a complex investigation and our officers, in particular DC Deborah Southall, conducted a comprehensive investigation to achieve this outcome.
“I’d like to thank the Gambling Commission for their assistance, particularly in providing evidence which supported our enquiries. No one should profit from criminal activity and the Proceeds of Crime Act enables police and partner agencies to confiscate cash, including money held in bank accounts and other physical assets gained through illegal means. This result serves as a stark warning that anyone involved in such activity can expect to find themselves the focus of intense scrutiny and any so-called ill-gotten gains can be forfeit.”
A spokesperson from the Gambling Commission said:
“Illegal lotteries, including those taking place through social media channels, will continue to be a focus for our enforcement work as we link up closely with police forces and platforms like Facebook to pinpoint not only the activity, but those behind it and those who are breaching gambling rules and social media standards.”