Section 14 of the Gambling Act 2005 states that a lottery is a type of gambling which has three essential characteristics.
Lotteries include raffles, tombolas, sweepstakes and some other activities.
The Gambling Act 2005 created six categories of lotteries:
Of these six categories, only private lotteries, incidental lotteries and society lotteries can involve charitable fundraising. Lotteries run by, or ‘on behalf of’, charitable institutions are ‘society’ lotteries. However, ‘private’ and ‘incidental’ lotteries can also be organised by people looking to fundraise ‘in aid of’ a charitable institution.
A society lottery with ticket sales below £20,000 for a single draw and below £250,000 in a single year is a small-society lottery and must be registered with the local licensing authority.
A society lottery with ticket sales above these levels is a large society lottery and must have an operating licence from the Gambling Commission.
Private lotteries include private-society lotteries (for people that you are in a club with), work lotteries (for people that you work with) and residents’ lotteries (for people that you live with).
Private lotteries are exempt lotteries - they do not need a licence or permission from any authority (although you should get permission from the event organiser or site owner where relevant).
Incidental lotteries are lotteries that are held at events (where the lottery is not the main reason for holding the event).
Incidental lotteries are exempt lotteries – they do not need a licence or permission from any authority (although you should get permission from the event organiser or site owner where relevant).
The Gambling Commission is the lead regulator for gambling-based activity in Great Britain, including fundraising lotteries and raffles. Each type of lottery has its own standards and you can find an overview of these in the Gambling Commission Guidance, including guidance on:
Lotteries in Northern Ireland are subject to the following legislation:
Under the legislation, the only legal lotteries are:
Each type of lottery has its own rules. For more details, see the Northern Ireland Department for Communities’ guidance about The law on lotteries in Northern Ireland.
You must ensure you meet the relevant codes of practice, licence conditions, and conditions set out in law and relevant regulations.