Cash Raffles: Are They Legal?
Mr James Braid asks

In June this year I organised a fund raising golf day and dinner dance for a Girls Football Club where my daughter plays. I am now looking at next years event and one of the suggestions was a cash raffle with tickets sold in the run up to the event and the winners drawn at the dinner.

I am not sure though if this is legal and if it is what do we need to put in place to obey any laws?

What counts as a raffle under UK law

Raffles are a common way to raise money for charities, community groups and local causes. Most people are happy to buy a ticket for a chance to win something, making them a reliable fundraising option.

In legal terms, a raffle is classified as a lottery. This matters because lotteries are regulated under the Gambling Act 2005, and certain rules apply depending on how the raffle is run and what prizes are offered.

There are different categories of lottery, and the rules vary for each. The two most relevant for community fundraising are incidental lotteries and small society lotteries. Incidental lotteries take place during events like fêtes or fundraising dinners. Small society lotteries are run by registered non-commercial organisations and can operate more flexibly. Understanding which type applies to your raffle will determine what you can offer as prizes and how you sell tickets.

Raffles run for private commercial gain fall under different, stricter regulations and are not covered here.

Can you offer cash as a raffle prize

For incidental lotteries, cash prizes are not permitted. The prizes must be goods or services rather than money.

Small society lotteries, by contrast, can offer cash prizes within certain limits. To run this type of lottery, your organisation must register with your local authority. Registration involves meeting specific requirements around ticket sales, prize limits and record keeping. Only larger lotteries meeting certain thresholds require registration with the Gambling Commission itself.

The Gambling Commission website and GOV.UK provide detailed guidance on the different types of lottery and what each permits. Checking these sources before planning your event is advisable.

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Ticket sales and other rules

The rules on ticket sales differ between lottery types. For an incidental lottery, tickets must be sold at the event itself and the draw must take place during that same event. You cannot sell tickets in advance or online under this exemption.

Small society lotteries allow advance ticket sales and do not need to be tied to a specific event, provided the organisation is properly registered.

Prize limits also vary. Incidental lotteries have caps on total prize value, while small society lotteries operate under different thresholds. These figures can change, so check GOV.UK for current limits. Participants in any lottery must generally be aged 16 or over under the Gambling Act 2005.

Getting it right

While running a raffle can be straightforward, ensuring compliance with legal requirements means understanding which rules apply to your situation. The main points to remember are:

  • Cash prizes are prohibited for incidental lotteries but allowed for registered small society lotteries
  • Incidental lottery tickets must be sold and drawn at the event
  • Small society lotteries require local authority registration
  • Participants must usually be 16 or over

If you are unsure which rules apply to your raffle, the Gambling Commission website has clear guidance. Your local council can also advise on registration requirements.