Deregulation of low level lotteries permits raising of charitable funds
Further to our previous commentary on the deregulation of low level lotteries, as of the 6th April, Gambling Act changes have enabled a number of lotteries, including raffles and other similar promotions, to be used to raise charitable funds.
The Gambling Commission has quoted the Minister for Gambling and Lotteries David Evennett as saying
“Money raised through lotteries makes a huge difference to local communities and this change in the law will ensure they continue to thrive.”
"Government's decision to remove this unnecessary red tape will be of great benefit to charities and good causes, encouraging more people to hold small lotteries and raffles.
In summary, the following changes have been made:
Previously, Private Society Lotteries could only be used to raise funds for the purposes for which the society was conducted. Following the changes, lotteries can now be used by private societies for any charitable or non-commercial purpose.
Work lotteries can also be used to raise funds for charitable purposes having previously been preventing from raising any funds, with all proceeds being returned as prizes and being used to cover reasonable expenses
Residents’ lotteries also benefit from the changes, now capable of being used to raise funds for any purpose other than private or commercial gain.
The requirement for tickets in private society, work and residents’ lotteries to contain prescribed information has also been removed but all other operational rules remain the same.
Incidental non-commercial lotteries, such as raffles held at school fetes, have now been renamed incidental lotteries and can be held at both non-commercial and commercial events to raise funds for charitable purposes. The results of such lotteries can now be announced after an event, which will enable other promotions that are classed as lotteries to be provided, such as balloon races. All other existing rules are to remain the same, including the requirement that tickets may only be sold during the event.
In conjunction with the BII, we have created an exam compiled from past paper questions.