In response to the downturn in the housing market a small but growing number of home owners have been opting to use a prize competition as a method of realising the value of their homes, it said. How-ever, such moves could go against the Gambling Act 2005.

"Prize competitions are free of statutory control under the Act provided they require sufficient skill, judgment or knowledge to either deter a significant proportion of potential entrants from participating or eliminate a significant proportion who do enter," said the Commission.

"Schemes that do not meet the test of skill, judgment or knowledge set out in the Act would be classed as lotteries."

Commission deputy chief executive Tom Kavanagh said: "Lotteries are the preserve of good causes and cannot be operated for private gain.

"Prize competitions are free of statutory control under the Gambling Act and can be run for profit but home owners considering such schemes as an alternative to selling their house risk committing a criminal offence if they...stray into offering an illegal lottery.

"We have advised operators to seek legal advice. Home-owners...are warned that promoting a lottery without an operating licence is an offence under the Gambling Act."