Changes to legislation on lotteries that come into force on 6th April will make it easier for charities to use lotteries to raise funds.
According to charity law specialists Bates Wells Braithwaite, the removal of certain restrictions will open up new fundraising opportunities by allowing incidental non-commercial lotteries to be held at commercial events and allowing private society, work and premises lotteries to raise money for any charity or not for profit organisation for the first time.
The Legislative Reform (Exempt Lotteries) Order 2016 (SI 2016/124) will remove restrictions that apply to such lotteries under the Gambling Act 2005. Key changes include expanding the exemption for each of the following:
1) Incidental lotteries: lotteries that are incidental to commercial events (provided the other conditions applicable to incidental lotteries are still met).
2) Private society lotteries: any private society lottery promoted wholly for a purpose other than that of private gain, making it no longer limited to the solely the purposes for which the society is conducted.
3) Work and residents’ lotteries: any work and residents’ lottery promoted wholly other than for the purpose of private gain, or organised in such a way that no profits are made.
The Order will make it easier to use small-scale lotteries to raise funds for charities and good causes.
Bates Wells Braithwaite solicitor Sarah Payne said:
“Lotteries are an important and growing source of unrestricted income for many charities. These changes loosen some of the rules surrounding lotteries and present new opportunities for charity fundraising.”
More information on the changes can be found on the Bates Wells Braithwaite site.
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