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Guidance to licensing authorities

The Gambling Commission's guidance for licensing authorities.


7 - Prizes

34.23. Prizes awarded in small society lotteries can be either cash or non-monetary. Licensing authorities need to be aware that the value of prizes declared on returns must not exceed the limits on prizes set out by the Act – in effect that combined with any expenses incurred with the running of the lottery, such as managers’ fees, they must not comprise more than 80 percent of the total proceeds of the lottery. Donated prizes would not be counted as part of this 80 percent (as no money would be withdrawn from the proceeds to cover their purchase) but are still subject to the limit on a single maximum prize of £25,000 and should be declared on the return following the lottery draw.

34.24. The Commission recommends that licensing authorities should advise small society lottery operators to check with local police if they wish to award items containing alcohol as prizes. This is in order to ensure that licensing law is not breached.

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Lottery tickets
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Specific offences in relation to lotteries
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