Raffles, Lotteries and Lucky Dips

What counts as a lottery?

Raffles, tombolas, lucky dips and sweepstakes share common features under UK gambling law, though the Gambling Act 2005 may treat them differently depending on how they are run. The basic test is whether people pay money for the chance to win a prize, with the winner chosen at random. If all three elements are present, you are likely running a lottery regardless of what you call it.

This applies whether you are selling tickets at a school fair, running a prize draw at a sports club, or organising a tombola at a village fete. The common thread is payment plus chance plus prize.

Many people assume that small scale events do not need to follow any rules. This is not the case. Lotteries in the UK must comply with specific legal criteria set out in the Gambling Act 2005. Most community fundraising activities can meet these requirements without significant difficulty, provided you understand which category your event falls into and follow the relevant conditions.

Free draws and prize competitions, where no payment is required to enter or where winners are selected by skill rather than chance, fall outside the legal definition of a lottery. These have different regulatory requirements and may offer an alternative for organisers who want to avoid lottery rules altogether.

Types of lottery and their rules

The Gambling Act 2005 recognises several categories of lottery. The rules for each depend on who is running it, where it takes place, and how much money is involved.

An incidental lottery is one that takes place as a small part of a larger event, such as a raffle at a charity dinner or a tombola at a summer fair. These are the simplest to run. Ticket sales and the draw should generally take place during the event, though certain conditions may permit limited advance sales if the lottery remains genuinely incidental to the main occasion. Prizes must not be cash, and the proceeds after expenses should go to purposes other than private gain.

A private lottery is restricted to members of a single organisation, people who work together, or people who live at the same address. Tickets cannot be advertised or sold to the general public. The lottery must be run by someone authorised by the organisation. All proceeds after prizes and expenses must go to the organisation or to prizes. No profit can be taken by individuals.

A small society lottery is for non-commercial organisations such as charities, community groups, and sports clubs. If your group wants to run regular lotteries or sell tickets more widely, this is likely the category you need. There are limits on ticket sales and prizes. If ticket sales stay below specified thresholds per lottery and per year, you can register with your local authority rather than obtaining a licence from the Gambling Commission. Above those thresholds, you will need a licence.

The Gambling Commission publishes detailed guidance on these thresholds and requirements. You should verify the current figures on the Gambling Commission website before planning your lottery, as limits are updated periodically. Your local council can also advise on registration for small society lotteries.

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Running a raffle or tombola at your event

For most small fundraising events, running an incidental lottery does not require registration or a licence. However, you must follow the basic rules.

• Sell tickets at the event and conduct the draw during the event.
• Do not offer cash prizes.
• Use the proceeds for your cause, not for private benefit.
• Ensure someone responsible is in charge of the draw.

Lucky dips work differently. If every participant receives a prize and all prizes are of similar value, the activity may not meet the legal definition of a lottery because there is no chance of losing. However, if some prizes are noticeably more valuable than others, the element of chance in obtaining a better prize means the activity could still constitute a lottery. You should assess whether genuine variation in prize value exists before concluding that lottery rules do not apply.

Tombolas usually involve pre-wrapped prizes with winning tickets attached. The same rules apply as for other incidental lotteries. Conduct all sales and draws on site and ensure prizes are not cash.

Registration, licensing and compliance

If your organisation wants to run lotteries on a larger scale, or sell tickets outside of a single event, you will need to consider the rules for small society lotteries. Registration with your local authority is required if you plan to run lotteries regularly or if ticket sales exceed certain amounts.

Registration involves a fee and some paperwork. You will need to show that your organisation is non-commercial and that the proceeds will go towards its stated purposes. Once registered, you can run lotteries throughout the year, subject to limits on ticket sales and prize values.

If your lottery grows beyond the small society limits, you will need to apply for a licence from the Gambling Commission. This involves more detailed requirements and higher fees. Most community groups and local charities will not reach this level, but it is important to know where the boundary lies.

Failing to comply with the Gambling Act 2005 can result in enforcement action, including prosecution and financial penalties. The Gambling Commission has powers to investigate unlicensed gambling activities, and local authorities can take action against unregistered lotteries. Getting the paperwork right protects your organisation and demonstrates to participants that your lottery is being run lawfully and fairly.

The Gambling Commission website provides clear guidance on when registration becomes licensing and what records you need to keep. Local councils can answer questions about the registration process and fees in your area.