[Hong Kong Law] Many merchants have held lucky draw activities, but most of them are illegal?

Online lottery draws can be seen everywhere, but please remember that universality does not mean that it is legal. Just like running a red light, no one catches it. It does not mean that the whole thing is legal.

Lottery is a kind of lottery activity. If the organizer does not obtain a license, it is illegal. In general lottery activities that have already received a license, the license number must be attached under the advertisement/post, because this is a license requirement. Therefore, it can be said here that any lottery activities that do not specify the license number are illegal activities.

According to the "Gambling Ordinance" which regulates gambling activities, "business promotion competition" refers to the promotion of business or business, or the promotion of any product, organized and used lucky draw or betting games contests or plans for distributing or distributing prizes. Common examples include lucky draws held by department stores and restaurants to promote their business. Online shops are not exempted. Anyone who wants to hold a business promotion competition must first apply for a business promotion competition license from a public official appointed by the Secretary for Home Affairs.

According to Article 4 of the Gambling Ordinance, all lottery activities (unless permitted by a license) are illegal. If the case is convicted, the maximum penalty is a fine of $5,000,000 and imprisonment for two years. As mentioned earlier, no one caught in a lottery without a license does not mean that there is no violation of the law. So before you hold an event, please weigh the relevant legal risks.