Gambling - Draft Legislative Reform (Exempt Lotteries) Order published

Last year we reported on the ‘Consultation on proposals to remove various lottery restrictions‘ in that the DCMS had launched a ‘fast-tracked' consultation on proposals to remove various restrictions that apply to certain types of lotteries. The consultation had proposed lifting restrictions on incidental non-commercial lotteries to also allow them to be held at commercial events and to allow private society, work and residents' lotteries to be able to raise money for charities and good causes.

In July 2014, the Government issued its response document full details of which can be viewed here: 'Gambling - Government Response to Lotteries Consultation'. 

The Draft Legislative Reform (Exempt Lotteries) Order 2015 (‘Order'), which has been published today, was laid before Parliament on 29 January 2015. Parliament now has a minimum of 40 days to determine if the Order should be made.

A Keeling Schedule showing the changes that would be made to primary legislation by the draft Order can be found at Appendix 1 of the Explanatory note.

In the Explanatory Note the Minister recommends that the negative resolution procedure apply to this Order, as its purpose is to implement a deregulatory policy for types of lottery - incidental non-commercial, private society, work and residents' lotteries that are small scale in nature and (as illustrated by the responses to the consultation) not controversial and welcomed by the intended beneficiaries, the charities and not-for-profit sectors.

Although the amendments are not limited to technical amendments, the amendments do not change the existing scheme of Schedule 11:

1. The purposes for which exempt lotteries may be held will not change. Incidental lotteries will continue to only be able to be held for purposes wholly other than commercial gain, and organisers will continue to be bound by the Gambling Act 2005 (incidental Non-Commercial Lotteries) Regulations 2007, which limit allowable deductions for costs to £100, and prizes to £500. Work and residents' lotteries similarly will only be able to make a profit where the profit will be applied to purposes wholly other than commercial gain. Section 261 of the Gambling Act 2005, which makes it an offence to misuse the profits of an exempt lottery. 
2. Exempt lotteries will remain small in size and scale, in line with the initial Parliamentary intention of Schedule 11. Ticket sales will remain limited to persons attending the relevant connected event (in the case of incidental lotteries), or a single workplace or residence (in the case of work and residents' lotteries). 
3. The changes being made to ticketing removes an administrative red tape but do not alter the legal rights of ticket holders. To ensure that ticket holders are aware that tickets remain non-transferable, the Government indicated in its response that it will ask the Gambling Commission to include guidance to organisers that they must ensure that promotional material makes it clear tickets are non-transferrable. 
4. Removal of the requirement to announce the outcome of the lottery removes an anomaly which has prevented some small, local lotteries (such as balloon races) being able to be held as exempt lotteries.

To view the Order and the Explanatory Note please click on the links below:

The Legislative Reform (Exempt Lotteries) Order 2015

The Legislative Reform (Exempt Lotteries) Order 2015 - Explanatory Document