Ltd Company Being able to gamble?

slackda

Tried to get an answer out of the Gaming/Lotteries commission on this but they were less than helpful.....


If you have a ltd company that takes payments to run a syndicate lottery scheme,taking a small management fee for the service. can that ltd company legally go and enter a lottery draw??,

i assume that if the syndicate won there would be no taxable income.

Monsoon

There was a long thread along these lines on the business forums a while back. I don't think there is anything stopping a Ltd Co from gambling. I am not sure if the lottery only pays out winnings to natural persons though. I know a lot of people would argue fiduciary duty - that given the inherent risks and odds in gambling, it is not in the best interests of the company to do it.

slackda

yeah i agree, that a company shouldn't gamble but effectivly all the company is doing is offering a service of bringing a syndicate together....

deanshepherd

Are you asking whether the company can legally buy a lottery ticket for itself out of it's management fee? Or whether it can buy tickets in it's own name, albeit for future distribution under the terms of the syndication?

Not sure of the answer either way.

As long as the articles of association permit such an activity then it will be down to the national lottery terms and conditions of entry.

slackda

deanshepherd wrote: »

Are you asking whether the company can legally buy a lottery ticket for itself out of it's management fee? Or whether it can buy tickets in it's own name, albeit for future distribution under the terms of the syndication?

Not sure of the answer either way.

As long as the articles of association permit such an activity then it will be down to the national lottery terms and conditions of entry.

Hi Dean the Later,

I suspect the way around it would be for the director to personally buy the Ticket.