Qualification of a "donation circle" as a business analogous to a lottery

Facts

The SCC was seized with an appeal against a judgment convicting X. and [Y.] for an offence against the LottA. The facts establish that X. and [Y.] participated in a "donation circle" where new participants pay a stake of CHF 7,500 in the hope of realizing a gain by convincing other people to join the circle. The SCC considered that this type of operation applies the so-called "snowball" method and therefore constitutes a business analogous to a lottery within the meaning of Art. 43 para. 1 LottO, subject to the provisions of the LottA.

Considerations

According to the SCC, a "donation circle" where participants are offered, in exchange for a payment, the chance to realize a gain that can only be obtained if they succeed in convincing other people to become part of the circle by paying a stake, is an operation applying the snowball method and therefore constitutes a business analogous to a lottery within the meaning of Art. 43 para. 1 LottO.

The operation of such an operation is punishable under Art. 38 para. 1 LottA. However, the payment of the stake as such is not punishable under Art. 38 para. 2 LottA.

The SCC…