Prizes and exemptions to regulations
Prizes awarded in small society lotteries can be either cash or non-monetary. The money deducted from the proceeds of the lottery to cover prizes must not exceed limits set out by the Act. Combined with any expenses incurred with running the lottery, they must not be more than 80% of total proceeds of the lottery. An example of expenses could be manager's fees. Donated prizes would not be counted as part of this 80%. This is as no money would be withdrawn from the proceeds to cover their purchase. They should still be declared on the return following the lottery draw.
Exemptions to registration
There are 3 types of lottery that can be conducted without needing registration. A number of requirements must be met to be exempted. These are a -
- Customer Lottery
- Incidental Lottery
- Private Lottery
More information on these lottery types are on the Gambling Commission’s website.