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The Commission requires all lottery promoters to comply with the licensing objectives and treats any breach of the licence conditions very seriously. It expects all licensed lottery operators to put in place arrangements to make sure that the proceeds of each lottery are distributed in a lawful and compliant way. That includes ensuring that a minimum of 20% of the proceeds of each lottery promoted are applied to the purposes of the society or local authority and that any expenses are reasonably incurred. Misuse of the ‘profits’ of a lottery may constitute a criminal offence4 . In circumstances where a breach of the Act and/or the licence conditions occurs the Commission will consider what regulatory or other action it needs to take. That could include a review of the operating licence of the promoting society, local authority and ELM and following that review the Commission has the power to impose sanctions such as a formal warning, additional licence conditions, a financial penalty or suspension or revocation of an operating licence.


1Lottery operators will wish to take note of Charity Commission advice on how charity law applies to fundraising: Charities and Fundraising (opens in a new tab)

2Social Responsibility code 4.3.1

3 Section 252(4) of the Gambling Act 2005 (opens in a new tab)

4 Section 260 of the Gambling Act 2005 (opens in a new tab)

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