What is an ELM?
Lotteries within Great Britain are the preserve of good causes and as such the Act did not intend ELMs to be primarily a vehicle to create profit for commercial organisations; rather, the intention was to enable societies and local authorities to raise funds for their own non-commercial purposes.
An ELM is defined in section 257 of the Act (opens in new tab) as someone that makes arrangements for a lottery on behalf of a society or local authority but is not a member, officer or employee of the society or local authority. A society or local authority and an ELM must be separate entities and be able to demonstrate that they are independent of each other.
To this end the Commission would not consider ELMs to be independent if, for example, a director or employee of an ELM was also a trustee, director, employee or member of the society whose lottery they are promoting.
The Commission might not also consider the ELM and society to be independent if, for example, a director or employee of an ELM was closely connected to someone (such as a family member or personal friend or associate) who was a trustee, director or individual holding a strategic decision making role within the society whose lottery the ELM is promoting.
The Act allows societies and local authorities to employ ELMs to manage all or part of their lotteries so that societies and local authorities may benefit from the experience or economies of scale that come with employing an ELM.
Under section 252 of the Act (opens in new tab), a person promotes a lottery if they make or participate in making the arrangements for a lottery. It states further that a person promotes a lottery in particular if they:
- make arrangements for printing of tickets
- make arrangements for the printing, publication and distribution of promotional material1
- make arrangements to advertise a lottery
- invite an individual to participate in a lottery
- sell or supply tickets
- offer to sell or supply tickets
- use premises for the purpose of allocating prizes or for any other purpose connected with the administration of a lottery.
Under section 258 of the Act (opens in new tab) a person commits an offence if they carry out any of these activities on behalf of a society or local authority unless they:
- are an officer, employee or a member of a licensed or registered society or local authority
- are a licensed ELM directed by a society or local authority to run all or part of its lottery.
A person also commits an offence if they facilitate a society or local authority lottery unless they act in accordance with an operating licence. Under section 259 of the Act (opens in new tab) a person facilitates a lottery if they:
- print lottery tickets for a specified lottery
- print promotional material for a specified lottery
- advertise a specified lottery.
Uncertainty can arise as to whether services provided to societies or local authorities amount to the promotion or facilitation of a lottery or to the provision of services which do not amount to promotion or facilitation. The Commission’s advice note Promoting society and local authority lotteries gives further guidance on the distinctions between the two, but anyone who is uncertain whether the services provided require the provider to hold an ELM licence should contact the Commission for further guidance.
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Last updated: 17 October 2024
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