Parts 4 and 5: Small society lotteries
655.Under Part 4, a small society lottery is a lottery promoted on behalf of a non-commercial society (as defined in section 19 of the Act), the proceeds of which fall below the thresholds set out in paragraph 31 of this Part. Such a lottery will be exempt only if all relevant conditions set out in Parts 4 and 5 are complied with.
656.Small society lotteries are distinguished from large society lotteries by the amount of the proceeds that they generate. A large society lottery requires an operating licence from the Commission under Part 5 of the Act. A lottery is a large society lottery if its proceeds exceed the thresholds set out in paragraph 31.
657.Where the proceeds fall below these thresholds, the lottery qualifies as a small society lottery, and is regulated by these Parts of Schedule 11. The Secretary of State may change these thresholds in regulations.
658.A small society lottery may be promoted for any of the purposes of the society (paragraph 32). As with large society lotteries, at least 20% of the proceeds must go to a purpose for which the society is conducted (paragraph 33). No single prize may be worth more than the amount set out in paragraph 34. Small society lotteries may have rollovers, although rollovers are only permitted where every lottery that may be affected by the rollover is also a small society lottery and the rollover will not permit any person to win more than the amount in paragraph 34 (paragraphs 34 and 35). This amount may be varied by the Secretary of State in regulations under Part 6.
659.Conditions are also set out in paragraphs 36 and 37 relating to the format and price of tickets. As is the case for large society lotteries, one document can be a ticket for the purpose of entering a number of lotteries, so long as the dates of the draw in those lotteries can be ascertained from the information on the ticket. Tickets for small society lotteries need not be paper documents – they may also be electronic. If a ticket is an electronic ticket, however, it must be capable of being printed, or stored electronically.
660.A society must be registered with a local authority (in England and Wales) or licensing board (in Scotland), in accordance with Part 5 of the Schedule while any small society lottery is being promoted.
661.The society must send to the local authority with which it is registered, a statement of the matters listed in paragraph 39(2). This includes information as to:
The arrangements for the lottery (dates, prizes, proceeds etc.);
Amounts deducted by the promoters for prizes and costs;
Whether any other costs were paid, other than from the proceeds of the lottery.
662.Two members of the society, or its governing body, must sign a statement sent to the local authority. If a local authority receives a statement, and they think that the lottery was, in fact, a large lottery, they must notify the Commission.
663.The provisions for registration, in Part 5, set out the mechanisms for application, registration, refusal, revocation, cancellation and appeal against decisions made in relation to the registration of a small society lottery. Appeal is to the Magistrates Court and, in Scotland, to the Sheriff. There is an annual registration fee of an amount to be prescribed by the Secretary of State and Scottish Ministers in regulations. Local authorities and licensing boards must keep a register of all societies registered under this Part, and must notify the Commission when they register any society.
