Guidance
Lotteries and the Gambling Act 2005
Guidance on lotteries and the Gambling Act 2005 for local authorities
Contents
- Introduction
- Definition of a lottery
- Definition of ‘prize’
- Definition of ‘society’
- Application and Duration
- Annual Fee
- Refusal of application
- Revocation of a small society’s registered status
- Appeals
- Cancellation
- Lottery Tickets
- Lottery Proceeds
- Lottery Prizes
- Administration and returns
- Lottery register
- Types of lottery that do not require a registration or licence (exempt lotteries)
- When is a lottery not a lottery?
- Common Problems
Lottery Prizes
Prizes awarded in small society lotteries can be either cash or non-monetary. Prizes declared on returns must not exceed the limits on prizes set out by the Act. No single prize can be worth more than £25,000, even if the prize itself was donated.
At least 20% of the total proceeds from the lottery must go to the good cause. The remaining 80% can be used for expenses incurred with the running of the lottery, such as managers’ fees and prizes.
Donated prizes should be declared on the return following the lottery draw. The worth of the prize is its market value – not how much the promoter paid for it.
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Lotteries and the GA05: Administration and returns
Last updated: 11 October 2021
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