Firstrand Bank Ltd. v National Lotteries Board (385/07) [2008] ZASCA 29; [2008] 3 All SA 121 (SCA); 2008 (4) SA 548 (SCA) (28 March 2008)

Firstrand Bank Ltd. v National Lotteries Board (385/07) [2008] ZASCA 29; [2008] 3 All SA 121 (SCA); 2008 (4) SA 548 (SCA) (28 March 2008)

The Supreme Court of Appeal held that the Million-a-Month Account operated by Firstrand Bank constitutes a prohibited lottery under the Lotteries Act 57 of 1997. The deposit of money into the account, even if ultimately returned to the depositor, is a 'subscription' as defined in the Act because it is consideration for the right to compete for prizes allocated by chance. The possession of money transferred to the bank is irretrievably lost to the depositor for the period and is of value to both parties, thus constituting a stake. The scheme falls within the extended definition of a lottery and is not excluded by s 63. The Board has the statutory function and implied power to seek...

Citation
[2008] ZASCA 29
Parties
Appellant: Firstrand Bank Limited; Respondent: National Lotteries Board
Court
Supreme Court of Appeal
Jurisdiction
South Africa
Judgment Date
28 March 2008
Case Number
385/07
Procedural Posture
Civil Appeal / Appeal From High Court (pretoria)
Outcome
Appeal dismissed with costs, including costs of two counsel.
Judges
Howie, Streicher, Nugent, Combrinck, Cachalia
Legal Topics
Lotteries Act Interpretation, Subscription Definition, Promotional Competition, Banking Products Regulation
Commercial and Corporate Administrative Law Lotteries Act Interpretation Subscription Definition Promotional Competition Banking Products Regulation

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Downloadable case file Legal principles 4 Authorities cited 10 Party arguments 2 Amounts and remedies 5
Sign in to unlock

Parties

Firstrand Bank Limited

Appellant

National Lotteries Board

Respondent

Procedural Posture

Civil Appeal / Appeal From High Court (pretoria)

Legal Issues

  1. 1 Whether the Million-a-Month Account operated by Firstrand Bank constitutes a prohibited lottery under the Lotteries Act 57 of 1997.
  2. 2 Whether the deposit of money into the account amounts to a 'subscription' as defined in the Act.
  3. 3 Whether the National Lotteries Board has standing and power to seek declaratory and interdictory relief against the scheme.

Ratio Decidendi

The Supreme Court of Appeal held that the Million-a-Month Account operated by Firstrand Bank constitutes a prohibited lottery under the Lotteries Act 57 of 1997. The deposit of money into the account, even if ultimately returned to the depositor, is a 'subscription' as defined in the Act because it is consideration for the right to compete for prizes allocated by chance. The possession of money transferred to the bank is irretrievably lost to the depositor for the period and is of value to both parties, thus constituting a stake. The scheme falls within the extended definition of a lottery and is not excluded by s 63. The Board has the statutory function and implied power to seek...

Court Disposition

Appeal dismissed with costs, including costs of two counsel.

Orders

  • The appeal is dismissed.
  • The appellant is ordered to pay the respondent's costs, including the costs of two counsel.