You may recall reading an article in BWB’s Charity & Social Enterprise update (Spring 2015) that stated changes were afoot to allow charities more opportunities to raise funds from exempt lotteries. 

The government has now laid before parliament an order allowing incidental non-commercial lotteries to be held at commercial events and allowing private society, work and premises lotteries to raise money for any charity or not for profit organisation, for the first time. If approved, the Legislative Reform (Exempt Lotteries) Order 2016 (LRO) comes into force on 6 April 2016.

The LRO would amend Schedule 11 of the Gambling Act 2005 to deregulate certain types of exempt lotteries in defined circumstances:

Incidental lotteries

The LRO allows incidental lotteries (essentially a raffle for good causes held at an event) to be held at commercial events.

Currently an incidental lottery may only be held at a non-commercial event, such as a school fete, where all the proceeds raised at the event go entirely to purposes that are not for private gain. Under the proposed new rules, an incidental lottery could be held at an event which is not wholly or even partially for good causes. This paves the way for incidental lotteries for charity to be held at large sporting events or arena pop concerts, for example.

A further proposed change is to allow announcement of the incidental lottery results after the event.

Having said this, to remain within the exemption, organisers will need to comply with all of the other regulatory requirements in respect of incidental lotteries – for example, all proceeds from the lottery must go to good causes subject to a £100 deduction for expenses.

Private lotteries

If approved, the changes will allow for private society, work and residents lotteries to be promoted for any purpose other than that of private gain. This means that, for the first time, private lotteries can be used to fundraise for any charity or not for profit organisation.

It is also proposed to remove the requirement for a ticket for a private lottery to contain certain information, including the name and address of each promoter and the price, which should make life slightly easier for fundraisers.


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Sarah Payne

Associate

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+44(0)20 7551 7653

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s.payne@bwbllp.com
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Posted on 27/11/2015 in Legal Updates

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