The Betting Control and Licensing Board (BCLB) has directed all radio stations to stop airing lottery or prize competition draws unless legally authorized to do so.
In a letter to all radio stations, BCLB said that Prize Competition license holders have been misusing the permits by getting into agreements with radio stations to undertake the draws on their behalf.
According to the board, the draws should be done in public and in the presence of officials from BCLB.
"Radio stations will not be allowed to carry out any lottery or prize competition draw unless the said radio station has a gaming permit."
"License holder will conduct draws witnessed by the officers from the Board as per the law and only engage radio stations for normal advertisement/promotion as per the prevailing advertisement conditions," BCLB said.
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The regulatory body added that the Paybill account numbers used in the competition must be in the name of the entity carrying out the promotion and not the radio station to help in monitoring the license holders.
Failure to adhere to the new directive, license holders will have their permits withdrawn and action taken against radio stations involved.
BCLB said the misuse of the prize competition licenses has turned radio station into betting shops with disregard for gaming advertisement guidelines.
"This scenario has not only provided a fertile ground for unauthorized gaming activities but has also affected the general messaging of prize competitions and lotteries to a menial “send this and win that” without informing the public what competition or lottery they are engaging in," said BCLB.