I would like to organise a sweepstake (for example, on the European Championship or Olympic Games), are there any rules?
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A typical sweepstake lottery is a scheme where participants
pay to randomly select a team, in a sports tournament
sweepstake, or a horse, in a horse race sweepstake. The person
who selects the winning team, or horse, wins all the money.
Under the Gambling Act 2005 this qualifies as
a lottery.
Most sweepstakes are small scale and are run
in work places, where they are classed as ‘work lotteries’ under the
Gambling Act 2005 or by people who live together where they are
classed as ‘resident’s lotteries’ or in private members clubs
where they are classed as ‘private society lotteries’.
You do not need a licence to run this type of lottery but the
Gambling Act 2005 does set out some general rules about how these
lotteries must operate and anyone organising such a sweepstake
lottery is advised to read our guidance note on
Organising
small lotteries - November 2009 before
proceeding.
I would like to raise funds for a charity or other good cause
by running a football themed or some other type of sweepstake. What
would be the best way to operate this?
You would need to operate this as a society lottery. Small society
lotteries must be registered with the local Licensing
Authority. Large society lotteries require a licence from the
Gambling Commission.
For further information, please refer to
Promoting society and local authority lotteries - November 2009 which contains
guidance on the rules for small and large society
lotteries.
The people I work with would like to raise funds for
charity or another good cause by holding a sweepstake.
Can we do this?
No. If the lottery is being run as a work lottery the law
specifies that it cannot be run to raise funds, all the proceeds
(money collected) must be paid out in prizes or used to cover any
expenses. These lotteries are intended to be run for fun
only.
Read our guidance note on
Organising
small lotteries - November 2009 before
proceeding.
The people I live with would like to raise funds for charity or
another good cause by holding a sweepstake. Can we do
this?
No. This would be classed as a resident’s lottery and the law specifies
that it cannot be run to raise funds. All of the proceeds
(money collected) must be paid out in prizes or used to cover any
expenses. These lotteries are intended to be run for fun
only.
Read our guidance note on
Organising
small lotteries - November 2009 before
proceeding.
I am a member of a private members club that would like to
raise funds for the club by holding a themed sweepstake. The
sweepstake would only be open to members of the club. Can we do
this?
Yes. A private society can run a private society
lottery to raise funds for the society (club). However those
funds cannot be distributed to other beneficiaries. For further
information, please refer to
Organising
small lotteries - November 2009 which contains
guidance on the rules for private society lotteries.
I am a bookmaker and would like to operate a sweepstake
lottery for my customers to raise funds for charity or good cause.
Can I do this?
The law prevents most types of lotteries (work, private society
and customer
lotteries) from being promoted on licensed gambling premises.
However, society lottery tickets can be sold on gambling premises
on behalf of a licensed or registered society.
Read our guidance note on
Organising
small lotteries - November 2009 before
proceeding.
Page last reviewed: January 2013