Section 12

Lotteries, prize competitions and free draws

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12. Lotteries, prize competitions and free draws

This section contains information about running a lottery, prize competition or free draw for charitable purposes. This includes information about the relevant gambling regulations that may apply and whether you need a licence for your activity.

More information on running a charity lottery can be found here.

12.1 General Requirements

In this section, ‘you’ means a charitable institution or third-party fundraiser.

12.1.1

Anyone who wishes to act as a promoter of a lottery, prize competition or free draw on behalf of a charitable institution must have written authorisation to do so.

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12.1.2

You must include a clear and simple method of accessing any terms and conditions in communications about prize competitions and free draws and you must publish the identity of the promoter.

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Where relevant:

If you are the promoter of a society lottery, you must follow the Code of Non-broadcast Advertising and Direct and Promotional Marketing (CAP code) and the Code of Broadcast Advertising (BCAP code), including the sections on Gambling and Lotteries.
If you use a premium phone line to allow people to enter your lotteries, you must follow the Phone-paid Services Authority's (PSA) Code of Practice.

12.2 The draw

In this section, ‘you’ means a charitable institution or third-party fundraiser.

Procedure for the draw

12.2.1

You must ensure all valid ticket entries are included in the draw, that it is witnessed, and the result is recorded.

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12.2.2

You must ensure entrants are informed about how the draw will be conducted. This includes:

Providing clear information when you sell a ticket if you plan to transfer late entries into the next draw; and

Taking all reasonable steps to inform entrants if you plan to delay the draw date.

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Procedure after the draw

12.2.3

After the draw you must:

Return all filled-in ticket stubs and payments to the promoter for audit purposes.

Contact all winners within seven days of the draw.

Take all reasonable steps to award prizes to the winners.

Only make details of winners public with their permission.

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12.2.4

If a winner donates their prize back to you, this must be shown as a donation in your accounting records.

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Further guidance

Gambling Commission: Free draws and prize competitions

Northern Ireland Department for Communities: Leaflet on prize competitions in Northern Ireland

Advertising Standards Authority (ASA): Promotional marketing: Prize draws

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