Under the Gambling Act 2005 a non-commercial society may apply for an annual registration to conduct lotteries.
There is a fee of £40.00 payable for a new registration and an annual renewal fee of £20.00, providing the renewal is received prior to expiry of the existing registration. Applications must be made to the local authority where the head office of the society is based.
Who can apply?
A non-commercial society is one established and conducted for:
- charitable purposes;
- the purpose of enabling participation in, or of supporting, sporting or
- cultural activity; or
- any other non-commercial purpose other than private gain.
This allows such societies to hold lotteries over a period of time, where tickets can be sold in advance of the draw in order to raise funds. Lotteries are defined as “any payment of a fee for a ticket where the winning ticket(s) are allocated by way of chance” and can include raffles, 100 Clubs, bonus ball lottery draws, etc.
The maximum proceeds (ticket sales) for any individual lottery is £20,000 whilst the maximum cumulative proceeds for an annual registration period are £250,000.
A minimum of 20% of the proceeds of a lottery must go towards one of the society’s non-commercial aims. Rollover lotteries are permitted, however the maximum prize cannot exceed £25,000.
A ticket must be issued for each lottery entry that complies with the Gambling Commission’s Regulations which specify the details that must be printed on each ticket.
During the period of three months following the lottery (or the last draw date in a multiple draw lottery such as a 100 Club) the society must submit a return form to the local authority.
This must include details of:
the arrangements for the lottery;
- total proceeds
- deductions for prizes
- deductions for administrative costs
- amount applied to the society’s purposes, and
- any expenses incurred by third parties
Further information is available from the Gambling Commission’s website.