Raffles and Competitions

Raffles and competitions are regulated by the National Lottery Act 1993 and the Lotteries & Amusements Act 1976. Raffles are games of chance, whereas competitions contain an element of skill to decide the winner. This information sheet is a guide to the three types of lotteries and competitions most commonly used at local fundraising events.

Small Lotteries

The most common raffles and tombolas are referred to as ‘small lotteries’ and are held as an addition to a main event, such as a dinner, bazaar or stall. The draw must take place at the venue and before the end of the event. There is no limit to the value of donated prizes but if you buy prizes, then you must not spend more than £250. No cash prizes are allowed but there is no limit to the number of tickets sold or the price of tickets.

Social or Society Lotteries

Social or Society Lotteries involve the sale of tickets over a period of time. You will need to register with the Local Authority Licensing Department. There is a fee for initial registration and then a renewal fee each New Year. The total value of tickets in the lottery should not exceed £20,000, or the total value of tickets offered for sale in one calendar year must not exceed £250,000 for the whole charity. Because of these restrictions, if you are planning to register for a lottery, we would be grateful if you could check with ABC first to ensure we do not exceed this total.

The price of each ticket must not be more than £1. Each ticket should state the cost of the ticket, the name of the charity, the date of the draw and the name and address of the raffle promoter*, ABC’s registered charity number and the Local Authority the lottery is registered with.

You cannot sell tickets to under 16 year olds, nor can you sell tickets in the street or by way of a machine. Your Local Authority will provide forms which the promoter must complete with details of the proceeds and return.

Private Lotteries

These are raffles restricted to members of a club or society. The raffle can only be advertised on the society’s premises and tickets must be sold in person. The proceeds should be used to purchase prizes or to further the work of the society. There is no limit to how many tickets can be sold nor on the price of the tickets, but every entry must be the same price.

Competitions

Competitions rely on skill or judgement to decide the outcome, for example, a treasure hunt or ‘Guess the Weight of the Cake’. There can also be a mixture of chance and skill. For example, a draw may have a tie-break sentence competition. Competitions are less regulated and do not require a licence. There are no restrictions on the amount of money taken or any limit on the value of prizes.

If you are in any doubt about the legality of your raffle or competition, always check the details with the Licensing Department of your Local Authority.

*The organiser of the raffle is referred to as the ‘promoter’ under the licence.