Long anticipated changes to society lotteries come into effect

Broadly, the changes, which are reflected in the updated Licence conditions and code of practice (LCCP):

increase the caps on annual income from society lotteries from £10 million to £50 million (with a pro-rata limit £31,311,475 in 2020);
increase the limit on individual draw proceeds from £4 million to £5 million; and
increase the maximum individual prize from £400,000 to £500,000 (provided that the lottery proceeds reach the new maximum individual draw level).

Along with these increased limits on lottery income, licensees will be required to comply with new transparency requirements and guidance (which is available here), aimed at providing consumers with the information needed to make fully informed decisions about whether to take part in a lottery. Licensees will need to provide information on:

How much is returned to the good causes and what good causes they’re supporting
How much is spent on prizes
How much is spent on expenses
The process around the awarding of grants (if applicable)
The way in which winners are determined and prizes allocated
The potential prizes available, and;
The likelihood of winning a prize

All draws taking place from 29 July 2020 will need to comply with the updated LCCP, and licensees should review their policies, procedures and lottery and raffle terms and conditions to check whether updates are needed.

If you need any advice on the updated LCCP, please get in touch with Hannah Lyons or Jess Neville.

This information is necessarily of a general nature and doesn’t constitute legal advice. This is not a substitute for formal legal advice, given in the context of full information under an engagement with Bates Wells.

All content on this page is correct as of July 31, 2020.