Incidental non-commercial lotteriesLast updated: 25 January 2011 09:59 UK
An incidental non-commercial lottery is:
· Not promoted for private gain; and
· Is incidental to a non-commercial event.
Such examples may include a lottery held at a school fete or at a social event such as a dinner dance. An event may be regarded as non-commercial if all the money raised at the event, including entrance fees, goes entirely to purposes that are not for private gain. For example a fundraising social event with an entrance fee would be non-commercial if the profits went to a society but would be commercial if the profits were retained by the organiser.
The Act also specifies that:
1. the promoters of the lottery may not deduct more than £100 from the proceeds in respect of the expenses incurred in organising the lottery, such as the cost of printing tickets, hire of equipment and so on
2. not more than £500 can be spent on prizes (but other prizes may be donated to the lottery)
3. the lottery cannot involve a rollover of prizes from one lottery to another
4. all tickets must be sold at the location during the event, and the result made public while the event takes place.
NOTE: The Licensing Act 2003 permits prizes of alcohol to be offered in lotteries without the need for a premises licence under the 2003 Act.