(1) A lottery promoted as an incident of an entertainment shall be deemed to be an unlawful lottery, unless the promoter thereof has obtained a licence in respect of such lottery.
(2) The following conditions shall be observed by the promoter in connection with the promotion and conduct of such lottery, namely:-
(a) the whole proceeds of the entertainment (including the proceeds of the lottery) after deducting-
(i) the expenses of the entertainment, excluding expenses incurred in connection with the lottery,
(ii) the expenses incurred in printing tickets in the lottery, and
(iii) such sum (if any) not exceeding one hundred rupees, which the promoters of the lottery think fit to appropriate on account of any expense incurred by them in purchasing prizes in the lottery, shall be devoted to purposes other than private gain;
(b) none of the prizes in the lottery shall be money prizes;
(c) tickets or chances in the lottery shall not be sold or issued, nor shall the result of the lottery be declared, except on the premises on which the entertainment takes place and during the progress of the entertainment; and
(d) the facilities afforded for participating in lotteries shall not be the only, or the only substantial, inducement to persons to attend the entertainment.
(3) If any of the conditions specified in sub-section (2) is broken, every person concerned in the promotion or conduct of the lottery shall, on conviction, be punishable-
(a) for the first offence with fine which may extend to one thousand rupees,
(b) for the second offence with fine which may extend to two thousand rupees, and
(c) for any subsequent offence with imprisonment for a term which may extend to three months or with fine which may extend to five thousand rupees or with both :
Provided that in any proceeding under this section, it shall be a defence to prove that the breach was committed without his knowledge.
Explanation.-The entertainments to which this section applies are bazaars, sales of work, fetes and other entertainments of a similar character, whether limited to one day or extending over two or more days.