What is a lottery?
A lottery is any arrangement in which people pay to take part and prizes are allocated by a process that relies on chance. Examples would include:
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A raffle
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A Tombola
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100 club draws
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Scratch cards
Which lotteries are allowed?
The Gambling Act 2005 allows the following types of lottery:
External Lottery Managers
An External Lottery Manager (ELM) is a person or body that makes arrangements for a lottery on behalf of a society or authority of which they are not a member, officer or employee. An ELM must hold a lottery manager's operating licence from the Gambling Commission, and it is the responsibility of the society or authority using the ELM to ensure this is in place. More information is available on the Gambling Commission's website.
What requirements apply to lotteries?
Different requirements apply to each type of lottery. The following table gives an indication of the requirements, but the exact requirements can be found in the Gambling Act 2005 or by contacting the Licensing Section. For advice on Large Lotteries contact the Gambling Commission.
Requirements for various types of lottery
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Summary of requirement
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Lottery types it applies to
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Proceeds of lottery and event at which lottery takes place must not be used for private gain
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Incidental NC Lotteries
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Limit on the amount of proceeds that may be spent on administration and prizes applies
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Incidental NC Lotteries
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A roll-over of prizes is not allowed
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Incidental NC Lotteries
Private Society Lotteries
Work Lotteries
Customer Lotteries
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Ticket sales and allocation of prizes to take place during a specified event
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Incidental NC Lotteries
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No profits may be made from the lottery
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Private Society Lotteries
Work Lotteries
Customer Lotteries
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Restrictions on advertising apply
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Private Society Lotteries
Work Lotteries
Customer Lotteries
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Tickets must all be the same price, which must be shown on the ticket, and must be paid for at the time it is received.
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Private Society Lotteries
Work Lotteries
Customer Lotteries
Small Society Lotteries
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Tickets must show the name and address of the organisers, who tickets will be sold to, and conditions that apply
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Private Society Lotteries
Work Lotteries
Customer Lotteries
Small Society Lotteries
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Tickets can only be sold by organisers and are not transferable
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Private Society Lotteries
Work Lotteries
Customer Lotteries
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A maximum value of a prize of £50 applies
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Customer Lotteries
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Only one draw to take place within a period of seven days
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Customer Lotteries
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The society holds a valid registration with the local authority
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Small Society Lottery
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Proceeds must not exceed £20,000 per lottery or £250,000 per year
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Small Society Lottery
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The lottery must be promoted for the purposes for which the society is conducted and at least 20% of the proceeds must be used for those purposes
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Small Society Lottery
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A maximum value of a prize of £25,000 applies
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Small Society Lottery
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Rollovers are allowed, provided all the lotteries involved are small society lotteries
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Small Society Lotteries
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The only payment which can be made by entrants is the ticket price
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Small Society Lotteries
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Requirements relating to sending records of the lottery to the City Council apply
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Small Society Lotteries
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Registration of Small Society Lotteries with the City Council
