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Small Society Lotteries

Lottery or prize draw licence

A lottery licence is needed if your organisation wants to collect money for charity, sports or anything other than private gain. The licence also covers selling raffle tickets, running a sweepstake or holding a lottery with prizes.

Small Society Lotteries

Societies which run small lotteries (those in which £20,000 (or less) worth of tickets are put on sale and where the society’s aggregate proceeds from lotteries do not exceed £250,000 a year) are required to register with their local authority in the area where their principal office is located.

If the local authority believes that the society’s principal office is situated in another area it should inform the society as soon as possible and if possible inform that other authority.

Details of registration requirements and procedures should be available from the licensing department of the relevant local authority.
Societies who run small society lotteries under registration with a local authority and who sell tickets by means of remote communication (Internet, telephone etc) are not required to hold a remote gambling licence issued by the Commission.

Exceeding the small society lottery limit

If in the course of running a small society lottery:

  • more than £20,000 worth of tickets are put on sale,
  • and/or the society’s aggregate proceeds from lotteries exceed £250,000 in a year

We advise that the Local Authority inform the society that they must now apply for an operating licence from the Gambling Commission.

Under the Gambling Act 2005, the local authority must also inform us in writing and supply a copy of the statement relating to the lottery, and statements relating to any other lottery which make the lottery in question a large lottery.

Exempt Lotteries

Exempt lotteries do not need a Gambling Commission operating licence.

In addition to small society lotteries exempt lotteries include:

  • Incidental to a non-commercial event – commonly held at charity fund raising events;
  • Private society lotteries – only members of the  society and those on the society premises can participate in the lottery;
  • Work lotteries – only people who work together on the same premises may participate;
  • Residents lotteries – only people who live at the same premises may participate; and
  • Customer lotteries – only customers at the business premises may participate

Local Authority Run Lotteries

Under the Act local authorities are allowed to promote lotteries to raise revenue to spend on anything for which they have power to incur expenditure. All local authority lotteries must be run under an operating licence and relevant personal licences issued by the Commission. Local authority lotteries who allow players to participate in their lottery by means of remote communication will also be required to hold a remote lottery operating licence.

  • Local authority lotteries must apply a minimum of 20% of the gross proceeds of each lottery for any purpose for which it has power to incur expenditure.
  • Up to a maximum of 80% of the gross proceeds of each lottery may be divided between prizes and the expenses of the lottery
  • The maximum value of tickets that can be sold in a single lottery is £2 million.
  • The maximum aggregate value of lottery tickets that can be sold in any calendar year is £10 million.
  • The maximum prize in a single lottery is £25,000 or 10% of the proceeds (gross ticket sales), whichever is greater.
  • Rollovers are permitted provided the maximum single prize limit is not breached.

 Renewal of Lottery Licence

If the licence is renewed before it expires, then the annual fee of £20 will apply. If the licence is not renewed, then the full fee of £40 will need to be paid.

Please click here to renew the licence online.

If you require a paper copy of the renewal form or the return form, please contact us using the details below.

Date Updated: 06/11/14

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Return relating to a Small Society Lottery

Return to be completed after the lottery etc. has been held.

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Guidance on Running a Lottery

 

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Lottery information

 

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Lottery Application Form

 

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Contact information

Telephone:

01296 585605

Email:

licensing@aylesburyvaledc.gov.uk