(2nd part):
Even if all of these conditions can be met, there are still legal uncertainties about the sale of lottery tickets over the internet. (The National Lottery is exempt as it is covered by separate legislation). Here is the 'official', Gaming Board,view:
"A lottery may only be conducted on the Internet providing it has been registered with either the appropriate local authority or the Gaming Board, in accordance with the usual rules for promoting a lottery under the Act.
Lottery tickets may be sold almost anywhere except in the street. They can be sold by post or by telephone, but not by means of a machine. The Gaming Board's view is that a lottery run entirely by computer via the Internet amounts to selling tickets by means of a machine, and it has refused to authorise such lotteries. The Gaming Board has, however, granted permission for two Lottery Managing Companies to run lotteries over the Internet in much the same way as using the telephone - as a means of communication connecting the buyers and sellers of lottery tickets. The actual sale of the tickets must be carried out by human agency. All lottery tickets must be paid for before they are entered into the draw.
Foreign lotteries may not be promoted in Great Britain. It would, therefore, not be lawful to advertise an overseas Internet lottery or to sell tickets abroad under section 2 of the 1976 Act."
Information source:
http://www.culture.gov.uk/gambling_and_racing/fact_sheet s/fact_internet_gambling.htm
Chris