Lotteries and The Law

The law on lotteries has recently changed with the introduction of the Gambling Act 2005 which came into effect from the 1st September 2007. Lotteries are regulated by the Gambling Commission.

Disclaimer: The information contained on this web site and specifically on this web page is for general guidance only. The application and impact of the law cannot be predicted with any certainty and interpretations can vary widely based on the specific facts involved. Accordingly, the information on this site is provided with the understanding that we are not engaged in rendering professional legal advice and as such it should not be used as a substitute for consultation with a legal professional or other competent adviser before making any decision or taking any action based on the information provided. All information in this site is provided "as is", with no guarantee of completeness, accuracy, timeliness or warranty of any kind, express or implied.

There are several types of Lottery which can be held:

• Large society lotteries - societies that run lotteries where the proceeds (ticket sales) in a single lottery exceed £20,000, or the proceeds in all lotteries run in the same calendar year exceeds £250,000, are defined by the Gambling Act 2005 as running large lotteries, and as such are regulated by the Gambling Commission
• Local authority lotteries - these are lotteries operated by local authorities to support any purpose for which they have power to incur expenditure, and are regulated by the Gambling Commission
• Small society lotteries - these are where the proceeds (ticket sales) in a single lottery are £20,000 or less and £250,000 or less in all lotteries in the same calendar year. They are exempt from holding an operating licence but must be registered with their local authority
• Incidental non-commercial lotteries - held at non-commercial events, where all money raised at the event goes entirely to purposes that are not for private or commercial gain (but must be run in accordance with the relevant regulations)
• Private society, work or residents lotteries - where tickets can only be sold to society members, workers in or residents of a premises.
• Customer lotteries - run by occupiers of business premises selling tickets only to customers on the premises itself.
• A free draw is one where there is no cost of entry for the participant

Points of Interest:

The minimum age for participation in a lottery is 16

Society and Incidental Lotteries cannot be run for Private or Commercial Gain

The previous restriction on the price of each ticket is now removed

Information that must be specified on each ticket includes:

 
• the name of the society on whose behalf the lottery is being promoted;
• the price of the ticket;
• the name and address of the member of the society responsible for the promotion

of the lottery (in the case of a small society lottery run under local authority registration

the name and address of the ELM if there is one may be given as an alternative).
• the date of the draw, or the means by which the date may be determined; and
• the fact, where that is the case, that the society is licensed by the Commission.

Additional Information that must be specified on each ticket:

If you are a registered Charity then the ticket must either state 'Registered as a Charity'

or your Charity Registration Number in the format 'Charity Registration Number: 1234567'

Tickets must also bear the imprint of the printer who printed the tickets