Relaxation of Lottery Rules
2016
On the 6th April 2016 the Legislative Reform (Exempt Lotteries) Regulations 2016 will come into force.
The effect of the new regulations will bring greater flexibility to a range of lotteries. The aim of the changes is to make the rules around staging lotteries simpler. The new rules will also allow workplace and residents lotteries to raise funds for charitable purposes; previously all profit from such lotteries had to be directed to prizes, no deductions for charitable causes were permitted.
Incidental lotteries, through which funds could be raised for charity could formerly only take place as an incidental activity as part of a wider non-commercial event. The effect of this was to deter many business such as pubs from raising funds in this manner, to remain compliant with the law they would also need to pass on any other revenue collected during the course of the event to the good cause.
Finally, private society lotteries will now be able to raise funds for any purpose other than for private gain. Formerly, funds raised in these lotteries could only be used for the benefit of the Club itself.
The Department of Culture, Media and Sport state in their explanatory document to the new rules:
“The rationale for intervention is to allow business, organisations and individuals the ability to donate through incidental non-commercial, private society, work and residents’ lotteries to the charity of their choice, allowing charities to maximise their fundraising effort.”
From our own experience, many pubs and clubs will be pleased with these new rules and have been frustrated historically in their efforts to raise funds for good causes.
We can expect revised advice from the Gambling Commission in due course and shall keep you updated.