Local authority lotteries
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Licensing authorities may run 'local authority lotteries' to
raise funds to cover anything for which they have the power to
incur expenditure.
What licences do licensing 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.
More information is available in our advice
Promoting society and local authority lotteries - November 2009.
External lottery managers
Licensing 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 working with an ELM is
available in our advice
Promoting society and local authority lotteries - November 2009.
What are lottery submissions?
Local authorities must submit information to us
about each lottery they operate including:
- total proceeds and how they have been distributed
between prizes and expenses (including amount deducted for
rollovers)
- amount applied directly to purposes for which the
local authority has power to incur expenditure.
Detailed information about the responsibilities of
lottery operators, including lottery submissions, can be found in
the Licence
conditions and codes of practice - consolidated December
2011.
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 the online
returns system.
To use this system you must first register your
licensed lottery.
Guidance on how to complete your lottery submission is available
through the online system.
A paper version (
Lottery submission - form - May 2008) and accompanying
guidance (
Lottery submission - guidance notes - May 2008) is also
available. If you complete the paper version, this should be posted
to us at:
Lottery Submissions
Licensing Department
Gambling
Commission
Victoria Square House
Victoria Square
Birmingham
B2 4BP
Page last reviewed: July 2012