- Society Lotteries - Parliament's Culture, Media and Sport Committee Publishes Its Report
- May 27, 2015
- Law Firm: Withers Bergman LLP - New Haven Office
- Following the recent consultation on society lotteries, the Parliamentary Committee on Culture, Media and Sport has published a report recommending that rules and regulations affecting society lotteries should be changed to reduce the burden on those operating smaller lotteries and for those starting new lotteries.
The Committee's recommendations included:
- The need for greater differentiation between the regulations applied to small and local lotteries and those applied to larger lotteries, and in particular those run by commercial organisations;
- The current requirement for new lotteries that they must give at least 20% of ticket proceeds to good causes should be spread over an extended period (for example three years);
- Large, well-established lotteries should be providing more than the minimum return of 20% to good causes. However, the report noted that it would be a 'disincentive to innovation' to increase the requirement for the minimum return of 20%;
- The 35% cap on operating costs (which does not include prizes and money set aside for rollovers) should be reintroduced for the largest lotteries;
- The need for the legislation to be amended to recognise a class of 'umbrella' lotteries, with limits on individual draws, annual sales and prizes, and limiting the number of individual society lotteries that may join;
- The limits on the single society large and small lotteries should be raised (following research by the Gambling Commission into what might be the appropriate limits) and that the limits should be reviewed every three years.
It now remains to be seen how the Government implements these recommendations which will require new legislation. These are important areas for charities running lotteries and we will monitor developments and provide further updates in due course.