Loteri Fechan Cymdeithasau

Application Forms

Application Process

To make application the following must be submitted to the Licensing Authority:

• application form
• fee
• signatory authorisation 

Each year a renewal fee must be paid if the society wishes to run further draws.

The renewal fee can be paid for by contacting 01446 700111 and quoting:

• Small society lottery name
• Small society lottery reference number
• cost code 402084 73191

Applicants will need to complete a new signatory authorisation form on renewal if any of the signatories have changed.

An application can be refused for any of the following reasons:

• an operating licence held by the applicant for registration has been revoked or an application for an operating licence made by the applicant for registration has been refused, within the past 5 years.
• the society in question cannot be deemed non-commercial.
• a person who will or may be connected with the promotion of the lottery has been convicted of a relevant offence.
• information provided in or with the application for registration is found to be false or misleading.

However, we may only refuse an application for registration after the society has had the opportunity to make representations against the refusal. These can be taken at a formal hearing or taken via correspondence. We will inform the society of the reasons why we are minded to refuse registration and will provide it with at least an outline of the evidence on which we have reached that preliminary conclusion – in order to enable it to make any representations it sees fit. The applicant or society may decide to make an appeal against the decision. They must lodge an appeal within 21 days of receipt of the notice of the decision, and this must be made directly to the local magistrates’ court.

Following each lottery held, the promoting society of a small society lottery must send returns to the licensing authority with which it is registered within no later than 3 months following the date of the draw. This information will allow us to assess whether limits are being adhered to and to ensure that any money raised is being applied for the proper purpose.

The information that must be submitted within ‘a return form’ is as follows:

• the arrangements for the lottery – specifically the date on which tickets were available for sale or supply, the dates of any draw and the value of prizes, including any donated prizes and any rollover
• the proceeds of the lottery
• the amounts deducted by the promoters of the lottery in providing prizes, including prizes in accordance with any rollovers
• the amounts deducted by the promoters of the lottery in respect of costs incurred in organising the lottery
• whether any expenses incurred in connection with the lottery were not paid for by deduction from the proceeds, and, if so, the amount of expenses and the sources from which they were paid
• the amount applied to the purpose for which the promoting society is conducted (this must be at least 20% of the proceeds).

Background and Eligibility Criteria

A society should be one that is established and conducted for charitable purposes; for the

purpose of enabling participation in, or of supporting, sport, athletics or a cultural activity; or any other non-commercial purpose other than that of private gain.

It is important that the society is established for one of the above purposes, and that the proceeds of any lottery are for those purposes. It is illegal to establish a society whose sole purpose is to have lotteries - it must have some other purpose.

A small society lottery is one that is non-commercial (as above) and one where the total value of tickets to be put on sale per single lottery is £20,000 or less, or the overall value of tickets to be put on sale for all their lotteries in a calendar year does not exceed £250,000.

If the operator plans to be commercial or exceed these values then they will be classed as a large lottery operator, and must be licensed with the Gambling Commission instead.

The promoting society of a small society lottery must be registered with the licensing authority where their principal office is located.

It is possible to promote a lottery without requiring registration, but only for certain types of exempt lotteries and only when the necessary criteria is met. But in most cases, registration will be required.

Exempt Lotteries

In addition to the below overview please check the Gambling Commission guidance available at the bottom of the screen for details on what information must be displayed on the tickets sold.

• Incidental Non-commercial Lotteries 

  Only exempt from registration if:

   - No proceeds from the event will be used for the purposes of private gain.

   - The lottery is promoted wholly for a purpose other than that of private gain (i.e. for a charitable purpose/ good cause).

   - The promoters of the lottery will not be deducting more than £500 from the proceeds in respect of the cost of prizes.

   - The promoters of the lottery will not be deducting more than £100 from the proceeds in respect of the cost of other expenses, such as the cost of printing tickets or hire of equipment.

   - There will be no lottery rollover.

   - Tickets will only be sold during the event and on the premises where the event is being held.

   

  The results will be made public while the event is taking place.

   

  An example of an incidental non-commercial lottery may include a lottery held at a school

  fete, or at a social event such as a dinner dance.

• Private society lotteries

  Only exempt from registration if:

   - The lottery will only be promoted by authorised members of a society.

   - Tickets will only be sold to either society members and on the society premises.

   - The group or society is established and conducted for purposes other than gambling.

   - The lottery will be promoted for the purposes for which the society is conducted.

   - The lottery will only be advertised on the society’s premises. Tickets will comply with certain provisions common also to work and resident’s lotteries including that they are each of the same price and are non-transferable.

   - There will be no rollover

   

  An example of private society lottery may be one that is limited to members of a working men’s club or a sports club, where guests at the club would not be permitted to participate.

• Work lotteries

  Only exempt from registration if:

   - The promoters all work on a single set of work premises.

   - The tickets are only sold to persons who work on those premises.

   - The lottery will be organised to ensure that no profits are made.

   - The lottery will only be advertised on the work premises.

   - Tickets will comply with certain provisions common also to private and resident’s lotteries including that they are each of the same price and are non-transferable.

   - There will be no rollover.

   

  An example of a work lottery could be a sweepstake on the Grand National amongst work colleagues.

• Residents’ lotteries

  Only exempt from registration if:

   - The promoters live in a single set of residential premises

   - The tickets will only be sold to those who live in the residential premises.

   - The lottery will only be advertised on the residential premises.

   - Tickets will comply with certain provisions common also to private and work lotteries including that they are each of the same price and are non-transferable.

   - There will be no rollover.

   

  An example of a residents’ lottery may be one that is held in student halls of residence for students only.

• Customer Lotteries 

  Only exempt from registration if:

   - The lottery is promoted by a person who occupies the business premises.

   - The tickets are only sold by or on behalf of the promoter and only to customers when they are on the business premises.

   - The lottery will be organised to ensure that no profits are made.

   - The lottery will only advertised on the business premises.

   - All tickets will be of the same price and are non-transferable.

   - The prizes will not be worth more than £50.00.

   - There will be no rollover.

   - The draw will not take place within 7 days of a previous draw in the lottery or another customer lottery promoted on the business premises.

   

  An example of a customer lottery may be one held by a local butcher selling or supplying tickets on their own premises to customers only, with an opportunity to win a joint of meat.

• Free Draws and Prize Competitions

  In relation to free draws and prize competitions, we would recommend that you contact us or the

  gambling commission for further advice. 

Fees

• Application Fee: £40
• Renewal Fee: £20

Payment:

By card via the telephone. 

• 01446 709105

In person at the Civic Offices using cash or card payment.

If paying by card please quote the following information:

• Small society lottery name
• Small society lottery reference number
• Cost Code 402084 73191 

Supplementary Information

There are limits placed on small society lotteries:

• at least 20% of the lottery proceeds must be applied to the purposes of the society
• no single prize may be worth more than £25,000
• rollovers between lotteries are only permitted where every lottery affected is also a small society lottery promoted by the same society, and the maximum single prize is £25,000
• every ticket in the lottery must cost the same and the ticket fee must be paid to the society (i.e. the society must take payment) before entry into the draw is allowed

Lotteries may involve the issuing of physical or virtual tickets to participants (a virtual ticket being non-physical, for example in the form of an email or text message).

A purchaser of a small society lottery ticket must receive a document which identifies:

• the name of the promoting society
• the price of the ticket (must be the same for all tickets)
• the date of the draw, or enables the date to be determined.
• the name and address of the member of the society who is designated as having responsibility at the society for promoting small lotteries, or (if there is one) the external lottery manager

However, the requirement to provide this information can be satisfied by providing an opportunity for the participant to retain the message electronically or print it.

Other requirements relating to the sale of tickets are that:

• they may only be sold by persons aged 16 and over
• they may only be sold to persons aged 16 and over
• they should not be sold in a street, (street including any bridge, road, lane, footway, subway, square, court or passage - including passages through enclosed premises such as shopping malls); however, tickets may be sold from a kiosk, in a shop or door-to-door.

Prizes awarded in small society lotteries can be either cash or non-monetary. However the amount of money deducted from the proceeds of the lottery to cover prizes and any expenses must not comprise more than 80% of the total proceeds of the lottery.

Donated prizes would not be counted as part of this 80% (as no money would be withdrawn from the proceeds to cover their purchase) but should still be declared on the return following the lottery draw.

Regulations and Guidance

Gambling Commission Website