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The Gambling Commission determines there is three essential elements to a lottery, these being:<\/p>\n\n\n\n
- Payment is required to enter the game. <\/li>
- There must be a minimum of one prize.<\/li>
- Prizes are awarded purely on chance. <\/li><\/ul>\n\n\n\n
![\"The](\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/08\/Gambling-Commission-Lottery-Definition.png\")
<\/figure>\n\n\n\nA standard small society lottery is most often a charity raffle in which players purchase a ticket with a number on, the tickets are then randomly drawn and the individual whose ticket matches the drawn ticket wins a prize. <\/p>\n\n\n\n
A slightly different version to the standard raffle is a sweepstake. In this instance for example the participants pay to randomly draw a team in a sporting event. The person whose randomly drawn team wins the event, will win a prize. <\/p>\n\n\n\n
In addition to the three essential elements of a lottery listed above, all lotteries (with the exception of incidental lotteries) have another element In common. All tickets must be the same price,<\/strong> that way each participant has an equal chance of winning based on the same outlay. As mentioned above, incidental lotteries are the one exception to these raffle rules. <\/p>\n\n\n\n
![\"The](\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/08\/All-tickets-are-required-to-be-the-same-price.png\")
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The distinct types of lottery as stated under the Gambling Act 2005<\/strong><\/h2>\n\n\n\n
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The gambling commission has divided the types of lotteries into eight distinct categories, each with its own rules and limits, check out a brief description of the categories down below:<\/p>\n\n\n\n
<\/p>\n\n\n\n
Lotteries that require permission<\/h3>\n\n\n\n
<\/p>\n\n\n\n
Small society lotteries:<\/strong><\/h4>\n\n\n\n
<\/p>\n\n\n\n
The society in question must be exclusively for non-commercial purposes, common examples of groups organising small lotteries include sports groups, charities and cultural organisations. <\/p>\n\n\n\n
For lotteries of this type there is a \u00a320,000 top limit for ticket sales. In addition tickets must display the name of the society or local authority, the price of the ticket, the name\/address of the organiser and the date the draw will be held. <\/p>\n\n\n\n
![\"Balls](\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/08\/Lottery-Balls.png\")
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Large society lotteries:<\/strong><\/h4>\n\n\n\n
<\/p>\n\n\n\n
This is essentially the same as for small society lotteries except a minimum of \u00a320,000 in ticket sales in required. <\/p>\n\n\n\n
<\/p>\n\n\n\n
Local authority lotteries:<\/strong><\/h4>\n\n\n\n
<\/p>\n\n\n\n
These are lotteries run a local authority, normally as a method of combating the expenditure it routinely incurs. <\/p>\n\n\n\n
<\/p>\n\n\n\n
Lotteries that do not require permission<\/strong><\/h3>\n\n\n\n
<\/p>\n\n\n\n
Private society lotteries \u2013<\/strong> These must raise funds In order to support a good cause or for the purposes for which the society is conducted. <\/p>\n\n\n\n
<\/p>\n\n\n\n
Work Lotteries –<\/strong> Only for colleagues who work at the same single set of premises. These must either; make no profit, meaning proceeds are used for reasonable expenses\/ prizes or must be raising funds for a charity or good cause. <\/p>\n\n\n\n
![\"Running](\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/08\/Raffle-Tickets.png\")
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Residents lotteries –<\/strong> Similar to the above but for individuals who live on the same single set of premises. <\/p>\n\n\n\n
<\/p>\n\n\n\n
Customer lotteries –<\/strong> These must be run by a business, within its own premises and for its own customers. This type of lottery is not allowed to make a profit and so is unsuitable for fundraising. No prize can be more than \u00a350. <\/p>\n\n\n\n
<\/p>\n\n\n\n
Incidental lotteries –<\/strong> These can be held at commercial events and non-commercial events and must always be for a charitable purpose or other good cause. They can never be run for private or commercial gain. All tickets must be sold at the location\/time of event, however the draw can occur after the event has ended. No more than \u00a3100 can be deducted for expenses and no more than \u00a3500 spent on prizes.<\/p>\n\n\n\n
<\/p>\n\n\n\n
So what about when a licence is required?<\/strong><\/h2>\n\n\n\n
<\/p>\n\n\n\n
As mentioned above a licence is only required for: Small society lotteries, large society lotteries & local authority lotteries and each can be obtained in distinct ways each with different rules and regulations. <\/p>\n\n\n\n
<\/p>\n\n\n\n
Small society lottery Licence:<\/strong><\/h4>\n\n\n\n
<\/p>\n\n\n\n
A small society lottery licence can be obtained through your local authority (You can find your local authority here<\/a><\/strong> if you are unsure). You will be required to complete a registration form and return it to your local authority office.<\/p>\n\n\n\n
So what does a small society lottery licence cost? Licences of this type come with an initial registration fee of \u00a340 and an annual fee of \u00a320. <\/p>\n\n\n\n
![\"Small](\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/08\/Small-Society-Lottery-Licence-Cost.png\")
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Large society lottery Licence:<\/strong><\/h4>\n\n\n\n
<\/p>\n\n\n\n
A large society lotteries licence, unlike a small society lottery licence has to be obtained through the gambling commission directly, further information on how this can be achieved is available here.<\/a><\/strong><\/p>\n\n\n\n
<\/p>\n\n\n\n
Local Authority Lottery Licence:<\/strong><\/h4>\n\n\n\n
<\/p>\n\n\n\n
All local authority lotteries must be licensed by the Gambling commission as with large society lotteries. Full information on the rules, regulations and how to apply for a licence are available here.<\/a><\/strong> <\/p>\n\n\n\n
<\/p>\n\n\n\n
Additional Legal <\/strong>Requirements<\/h3>\n\n\n\n
<\/p>\n\n\n\n
Once your completed running a raffle\/ lottery for charity, a submission must be made to the local council within three months of the draw. In return they\u2019ll send you a template requesting further information, including;<\/p>\n\n\n\n
- Full details of the draw(s), including date of sale(s), date of draw(s) and the arrangements for prizes. <\/li>
- The proceeds of the draw(s).<\/li>
- The amounts deducted in respect of prizes.<\/li>
- The amounts deducted in respect of costs incurred of running the draw(s).<\/li>
- Any amount applied to a purpose for which the promoting society is conducted. <\/li>
- Expenses that were paid for other than by deduction from the proceeds. <\/li><\/ul>\n\n\n\n
![\"Running](\"https:\/\/www.networkportfolio.co.uk\/ncinsurance.co.uk\/thirdsectorprotect\/wp-content\/uploads\/sites\/6\/2019\/08\/Additional-Legal-Requirements.png\")
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Planning on Running A Charity Raffle \/ Organising small lotteries?<\/strong> We can help!<\/h3>\n\n\n\n
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Its important to remember that should something go wrong, your organisation could be liable for any damage caused or regulations broken. If you’re planning on running a charity raffle<\/a><\/strong> or organising small lotteries, find out how you can help protect yourself, your volunteers and your ability to trade.<\/p>\n\n\n\n