Fundraising activities that can be defined as lotteries come under the Gambling Act 2005 and are regulated by the Gambling Commission and local authorities. This includes any fundraising activity where:-
- people have to pay to enter
- there is at least one prize on offer
- prizes are awarded purely on chance
Raffles, prize draws, 100 clubs, sweepstakes and tombola are all types of lottery. They all include the selling of tickets at a set price and the chances of winning are the same for everyone who enters.
If your community group is planning to hold a fundraising activity of this kind, you will need to be aware of the relevant legal requirements.
The Gambling Act 2005 sets out no fewer than eight types of lottery. These include large society lotteries which are open to the general public, requiring either permission from the Gambling Commission or registration with a licensing authority.
Most lottery activities held by community groups as fundraising activities are likely to be small scale and will not require a license or registration. However, there are regulations relating to each of these permitted types of lottery and it is important that your community group is aware and complies with these.
Types of lottery commonly used for fundraising by community groups
Incidental non commercial lotteries
If your group is planning to hold a raffle or prize draw (lottery) as part of another event – perhaps as part of a dinner dance, sale of work or sporting event – then this is likely to be classed as an incidental non-commercial lottery. Your group will not require a license to hold this type of lottery as long as:-
- the event is non-commercial i.e. it is not run for private gain
- the lottery takes place on the same premises as the non-commercial event
- the results are made known at the event
There are specific rules relating to the amount of money you can spend on outlay for the lottery and the amount you can spend on buying prizes.
There are three types of private lottery permitted by the Gambling Act 2005:-
- private society lottery
- work Lottery
- residents lottery
The promotion of private lotteries and the sale of tickets must be restricted to within the club membership, works premises and employees or resident’s premises. There should be a single ticket price and the tickets themselves must be non transferable. The conditions of the private lottery as well as the promoters contact details should be stated on the tickets.
Private lotteries are only permitted as long as they are held to raise funds for a not-for-profit group or organisation.
Whatever ‘lottery’ you decide to hold, allow plenty of time to source prizes. Think about sourcing prizes which are relevant to your group’s aims and purposes or – if the raffle is part of an event – relevant to your theme. Wherever possible ask local businesses to donate prizes.
- for small or private raffles aim for a range of prizes of different values
- for larger raffles you may want to aim for a smaller number of high end prizes.
- an unusual prize is often more attractive
Further sources of information
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Last Updated 05/02/2013 14:25