How is “Carrot and Stick” model different from gamble and online finance?

Why is it not gamble?

According toĀ Gambling Act 2005 in the United Kindom, sports for reward is not gamble.

Gaming & game of chance

(1)In this Act ā€œgamingā€ means playing a game of chance for a prize.

(2)In this Act ā€œgame of chanceā€ā€”

(a)includesā€”

(i)a game that involves both an element of chance and an element of skill,

(ii)a game that involves an element of chance that can be eliminated by superlative skill, and

(iii)a game that is presented as involving an element of chance, but

(b)does not include a sport.

(3)For the purposes of this Act a person plays a game of chance if he participates in a game of chanceā€”

(a)whether or not there are other participants in the game, and

(b)whether or not a computer generates images or data taken to represent the actions of other participants in the game.

(4)For the purposes of this Act a person plays a game of chance for a prizeā€”

(a)if he plays a game of chance and thereby acquires a chance of winning a prize, and

(b)whether or not he risks losing anything at the game.

(5)In this Act ā€œprizeā€ in relation to gaming (except in the context of a gaming machine)ā€”

(a)means money or money’s worth, and

(b)includes both a prize provided by a person organising gaming and winnings of money staked.

Why is it not online finance?

finance provider means thatĀ a body corporate that:
(a) lends money or provides credit in the course of a business; or
(b) arranges or facilitates the provision of debt or equity finance in the course of a business; or
(c) provides, arranges or facilitates invoice discounting or factoring in the course of a business;
but, in accordance with regulation 2(2) of theĀ Small and Medium Sized Business (Credit Information) Regulations, for the purposes of those Regulations it does not include a body corporate that provides credit only by providing goods or services before payment of part, or all of, the amount to be paid for such goods or services.
Although the platform will charge a little transaction fee in “Carrot and Stick” model, it is just service to cover platform maintain cost. There are no financial services(credit, loan, etc.) on this platform. As a result, it is not a platform involving financial activities.
To conclude, it Carrot is just a fitness application to motivate individuals to keep fitness and enjoy a healthy lifestyle.
Reference
Gambling Act 2005 2005 CHAPTER 19 http://www.legislation.gov.uk/ukpga/2005/19
Small Business, Enterprise and employment ACT 2015, FCA Ā https://www.handbook.fca.org.uk/handbook/glossary/?starts-with=F

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