UK ministers look at the role society lotteries play and how much they raise

Society lotteries could face reform after the Department for Culture Media and Sport (DCMS) in England said it was to look at their role and consider the regulations they face.

The DCMS says it will issue a call for evidence in a few weeks time to explore the issues involved before making any decisions.

Society lotteries, while on a far smaller scale than the national version, are a good way for charities to raise cash.

However they come under intense scrutiny not only from charity regulations but also gaming and gambling regulations.

The Cultre Media and Sport Committee launched its inquiry in July to look at the case for relaxing the regulatory requirements faced by society lotteries, such as the '80:20' rule, which states a minimum of 20% of proceeds must be returned to good causes.

It came after concerns that society lotteries were in an advantageous position over the National Lottery because the National Lottery returns around 26% to good causes and 12% lottery duty.

The department said since the consultation announcement the National Lottery and society lotteries have continued to grow, showing no evidence that large-scale lotteries are impacting on the National Lottery.

The Lotteries Council submitted written evidence supported by the Hospice Lotteries Association, the IoF, RNIB, Macmillan Cancer Support, Scope and the Royal Voluntary Service.

It calls for an increase in ticket sales for a single draw from £4 million to £10m, an increase in the annual income cap from £10m to £100m, and an increase in prize values from £25,000 to £100,000 and from 10% of the proceeds to 50%.

The People’s Postcode Lottery – one of the largest society lotteries in the UK - said it could raise more than £130m for good causes if regulations governing prize size and revenue were relaxed.