Local authorities may run 'local authority lotteries' to raise funds to cover anything for which they have the power to incur expenditure.
What licences do local authorities need?
All local authority lotteries must be licensed by the Gambling Commission.
How much can local authority lotteries raise?
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 £4 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.
External lottery managers
Local authorities may employ an external lottery manager (ELM) to run all or part of their lottery. ELMs must be licensed by us.
More information about local authority lotteries and working with an ELM is available in our advice Promoting society and local authority lotteries
What are lottery submissions?
Local authorities must submit information to us about each lottery they operate. Each lottery submission must detail:
amount applied directly to purposes for which the licensing authority has power to incur expenditure.
amount distributed between expenses and prizes (including amount deducted for rollovers)
Detailed information about the responsibilities of lottery operators, including lottery submissions, can be found in the Licence conditions and codes of practice .
When are lottery submissions due?
Lottery submissions must be received by us within three months of the date of the lottery draw. In the case of an 'instant' (scratchcard) lottery, this should be within three months of the last date on which tickets in the lottery were put on sale.
How do I make a lottery submission?
Lottery submissions should be completed through our online returns system. To use this system you must first register your licensed lottery. Guidance on how to complete your lottery submission is available throughout the online system.
Lottery submission online guidance notes explains how to complete your lottery submission online.
A Lottery submission form and accompanying Lottery submission - guidance notes are also available. If you complete the paper version, this should be posted to us at:
Victoria Square House
How do I make a correction to my online lottery submission?
If you have completed a lottery submission through our online returns system and wish to make a correction, you can do so, online, within the 24 hours following submission.
If you wish to make a correction more than 24 hours after making a submission, you should send details of the changes to: firstname.lastname@example.org or contact us on 0121 230 6666.
Page last reviewed: June 2015