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Licence - lottery

This leaflet has been prepared for the guidance of residents and (potential) promoters in the district of Durham City. It is intended for reference only and should not to be regarded as exhaustive or as an authoritative interpretation of the law, for which reference should be made to the appropriate legislation (Lotteries and Amusements Act 1976).

General

All lotteries are illegal unless authorised in accordance with the above Act. "Lottery" has not been defined but has been interpreted through case law as meaning a distribution of prizes by lot or chance. This means that if any skill is involved (for instance, having to correctly answer questions before having the opportunity to be entered in a draw) then it may not be a lottery.

Raffles, tombolas, instant lotteries (scratch cards) and domino cards (sometimes mistakenly referred to as blind cards) are examples of types of lotteries that have to be registered.

The Act allows societies to register for the purpose of promoting lotteries to raise money for charities, sports and other similar purposes, but not for private or commercial gain.

Lotteries that are incidental to another event such as a dinner dance, fete or sporting event do not have to be registered if tickets are only sold during the event and the draw is held during the event (even if the event lasts two or more days). Also, lotteries where sales of tickets or chances are confined to members of a society, or to people who all live or work on the same premises, do not have to be registered.

Societies which run larger lotteries (selling £20,000 of tickets per lottery or where the total value of tickets offered for sale in the same calendar year amounts to £250,000) should be registered with the Gaming Board, Berkshire House, High Holburn, London WC1V 7AA.

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Ticket Requirements

Lottery tickets must not be sold by or to anyone under 16. Also, tickets must not be sold in the street, except from a kiosk. The Act specifies information that must be printed on all tickets: every ticket must specify the name of the society, the name and address of the promoter, date of the draw, and the price of the ticket. The price for every ticket or chance must be the same and must not exceed £2.00.

All tickets must also state that the society is registered under the Lotteries and Amusements Act 1976 with Durham City Council. (A society must be registered with the local authority within whose district its office or head office is situated (unless this office is in Scotland). However, once registered, societies may sell tickets in any district.)

It is recommended that societies have sample tickets approved by the Council before any tickets are printed.

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Registration Procedure

Application forms are available below. The applicant (promoter) has to give his or her name and address, the society's name and head office address, and provide details of the "lottery scheme". The scheme states the frequency of lotteries (weekly or annually at Christmas, for instance) and the purposes for which money will be used.

Details of two other members of the society must also be on the application form.

Fees for registration are set by statute. Currently, the registration fee is £35.00 and there is an annual fee of £17.50 due 1st January each year.

Registration takes approximately one month. All applications are referred to the Police. Certificates of Registration cannot be issued until written confirmation has been received from the Police stating there are no objections to the application. Any subsequent change of promoter or member must be notified to the council and these details are also submitted to the Police for vetting.

Lottery tickets must not be printed or sold until a society is registered.

Lotteries & Amusements Act 1976 - Application Form

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Financial Returns

Forms for these are supplied with the Certificate of Registration (and additional forms may be obtained from the Licensing Section). They must be returned to the Council not later than the end of the third month after the date of any lottery, and must be signed by the promoter and two members.

Money used as prize money or to buy prizes in any lottery must not exceed 55% of the total proceeds of that lottery, and expenses must cost less than 35% of the total proceeds. The combined total of prizes and expenses must not exceed 80% of the total proceeds.

No prize should exceed £25,000 or 10% of the total value of the tickets sold in a lottery.

If alcohol is to be offered as a prize, the promoter should check with the Magistrates' Court as to whether any permission is required.

Details on financial returns are checked and recorded by staff in the Licensing Section. The Council has to keep any returns sent to it for at least 18 months and any member of the public may inspect these returns during office hours free of charge.

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Possible Offences

Any person who prints, possesses, advertises, distributes or sells unlawful tickets or other documentation associated with an unlawful lottery, or attempt to cause any other person to do so, may be guilty of an offence.

Other offences relate to the frequency of lotteries and monetary limits/uses.

The maximum penalty is a £5,000 fine and/or a two year prison sentence.