A lottery is any arrangement where people pay to enter and prizes are allocated by chance, so a raffle, tombola or prize draw that charges for tickets is a lottery. In England, Scotland and Wales the Gambling Act 2005 decides whether you register it with your council, need a Gambling Commission licence or need nothing at all.
Who needs to register or get a licence
A society lottery that raises no more than £20,000 from a single draw and no more than £250,000 in a year is a small society lottery, registered with the local authority where your society's principal office is. Above either limit it is a large society lottery and needs an operating licence from the Gambling Commission before the limit is passed.
Lotteries that need no licence or registration
A raffle held as part of a one-off event, such as a fete or fundraising dinner, and a lottery run only for members of a club or society are exempt, provided you keep to the conditions. A free draw with no payment to enter, or a prize competition with a genuine test of skill, is not a lottery at all.
Promoting a lottery that is neither licensed nor exempt is an offence under section 258 of the Gambling Act 2005, so register or apply before you sell the first ticket.
What to have in place
- Registration with your council, or a Gambling Commission licence, before you sell any tickets, unless the lottery is exempt.
- A forecast of ticket sales for each draw and for the year, so you know before you pass a limit.
- Records of tickets sold, prizes awarded and expenses, showing the share of proceeds that went to your charity.
- A diary date for the return due after each draw.
Legal basis
Primary legislation and key regulations
Browse UK legislation (opens in a new tab) legislation.gov.uk