Gambling Bill

House of Commons

Session 2002 - 03
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Gambling Bill

Gambling Bill
Schedule 9 — Exempt Lotteries
Part 1 — Incidental Non-commercial Lotteries
169

Schedule 9
Section 242

Exempt Lotteries
Part 1
Incidental Non-commercial Lotteries
The exemption
5
1     (1)
A lottery is exempt if—
(a)
it is incidental to a non-commercial event within the meaning of
paragraph 2 (“the connected event”), and
(b)
the conditions specified in this Part are satisfied.
      (2)
A lottery to which sub-paragraph (1) applies is referred to in this Part as an
10
incidental non-commercial lottery.
2
An event is non-commercial if no sum raised by the organisers of the event
(whether by way of fees for entrance or for participation, by way of
sponsorship, by way of commission from traders or otherwise) is
appropriated for the purpose of private gain.
15
Deductions from proceeds
3
The promoters of an incidental non-commercial lottery may not deduct from
the proceeds of the lottery more than the prescribed sum in respect of the
cost of the prizes (irrespective of their actual cost).
4
The promoters of an incidental non-commercial lottery may not deduct from
20
the proceeds of the lottery more than the prescribed sum in respect of costs
incurred in organising the lottery (irrespective of the amount of the costs
incurred).
Purpose of lottery
5
An incidental non-commercial lottery must be promoted wholly for a
25
purpose other than that of private gain.
No rollover
6
The arrangements for an incidental non-commercial lottery must not
include a rollover.
Connection between lottery and event
30
7     (1)
No lottery ticket for an incidental non-commercial lottery may be sold or
supplied otherwise than—
(a)
on the premises on which the connected event takes place, and
(b)
while the connected event is taking place.
      (2)
The results of the lottery must be made public while the connected event is
35
taking place.

Gambling Bill
Schedule 9 — Exempt Lotteries
Part 2 — Private Lotteries
170

Interpretation: “prescribed”
8
In this Part “prescribed” means prescribed by the Secretary of State by
regulations.
Part 2
Private Lotteries
5
The exemption
9     (1)
A lottery is exempt if—
(a)
it is a private society lottery, a work lottery or a residents’ lottery
within the meaning of paragraphs 10 to 12, and
(b)
the other conditions specified in this Part are satisfied.
10
      (2)
In this Part a reference to a private lottery is a reference to a private society
lottery, a work lottery or a residents’ lottery.
Private society lottery
10    (1)
A lottery is a private society lottery if—
(a)
it is promoted only by authorised members of a society, and
15
(b)
each person to whom a ticket is sold is either a member of the society
or on premises wholly or mainly used for the administration of the
society or the conduct of its affairs (“society premises”).
      (2)
In this Part “society” means any group or society established and conducted
for purposes not connected with gambling
20
      (3)
In sub-paragraph (1)(a) “authorised” means authorised in writing by the
society or, if it has one, its governing body.
      (4)
In relation to a society which has branches or sections, the reference to a
society in sub-paragraph (1)(a) is a reference to a single branch or section.
Work lottery
25
11    (1)
A lottery is a work lottery if—
(a)
the promoters work on a single set of premises (“the work
premises”), and
(b)
each person to whom a ticket is sold or supplied also works on the
work premises.
30
      (2)
For the purposes of this paragraph a person works on premises if he—
(a)
is employed under a contract of employment to work at or from the
premises,
(b)
undertakes to work at or from the premises (whether or not for
remuneration), or
35
(c)
conducts a business at or from the premises.
Residents’ lottery
12    (1)
A lottery is a residents’ lottery if—

Gambling Bill
Schedule 9 — Exempt Lotteries
Part 2 — Private Lotteries
171

(a)
the promoters live in a single set of premises (“the residential
premises”), and
(b)
each person to whom a ticket is sold or supplied also lives in the
residential premises.
      (2)
For the purposes of this paragraph a person lives in premises if he habitually
5
resides in any part of the premises (whether or not there are other premises
in which he also habitually resides).
Purpose of lottery
13    (1)
A private society lottery may be promoted for any of the purposes for which
the society is conducted.
10
      (2)
A work lottery or residents’ lottery must be organised in such a way as to
ensure that no profits are made.
Advertising
14    (1)
No advertisement for a private society lottery may be—
(a)
displayed or distributed except on the society premises, or
15
(b)
sent to any other premises.
      (2)
No advertisement for a work lottery may be—
(a)
displayed or distributed except on the work premises, or
(b)
sent to any other premises.
      (3)
No advertisement for a residents’ lottery may be—
20
(a)
displayed or distributed except on the residential premises, or
(b)
sent to any other premises.
Lottery tickets
15
Each ticket in a private lottery must be a document (without prejudice to
section 237).
25
16    (1)
A ticket in a private lottery may be sold or supplied only by or on behalf of
the promoters.
      (2)
The rights conferred by the sale or supply of a ticket in a private lottery shall
not be transferable (and any purported transfer shall be treated by the
promoters of the lottery as being ineffective).
30
17
Each ticket in a private lottery—
(a)
must state the name and an address of each of the promoters of the
lottery,
(b)
must specify the class of persons to whom the promoters are willing
to sell or supply tickets, and
35
(c)
must explain the condition in paragraph 16(2).
Price
18
The price payable for each ticket in a private lottery—
(a)
must be the same,
(b)
must be shown on the ticket, and
40

Gambling Bill
Schedule 9 — Exempt Lotteries
Part 3 — Customer lottery
172

(c)
must be paid to the promoters of the lottery before any person is
given the ticket or any right in respect of membership of the class
among whom prizes are to be allocated.
No rollover
19
The arrangements for a private lottery must not include a rollover.
5
Part 3
Customer lottery
The exemption
20    (1)
A lottery is exempt if—
(a)
it is promoted by a person (“the promoter”) who occupies premises
10
in Great Britain in the course of a business (“the business premises”),
(b)
no ticket in the lottery is sold or supplied to a person except at a time
when he is on the business premises as a customer of the promoter,
and
(c)
the other conditions of a customer lottery specified in this Part are
15
satisfied.
      (2)
A lottery to which sub-paragraph (1) applies is referred to in this Part as a
customer lottery.
      (3)
For the purposes of sub-paragraph (1)(a)—
(a)
it is immaterial whether persons other than the person who occupies
20
the business premises also perform activities which amount to
promotion of the lottery in accordance with section 236, but
(b)
a reference in this Part to the promoter does not include a reference
to any of those other persons.
No profits
25
21
A customer lottery must be organised in such a way as to ensure that no
profits are made.
Advertising
22
No advertisement for a customer lottery may be—
(a)
displayed or distributed except on the business premises, or
30
(b)
sent to any other premises.
Lottery tickets
23
Each ticket in a customer lottery must be a document (without prejudice to
section 237).
24    (1)
A ticket in a customer lottery may be sold or supplied only by or on behalf
35
of the promoter.
      (2)
The rights conferred by the sale or supply of a ticket in a customer lottery
shall not be transferable (and any purported transfer shall be treated by the
promoter of the lottery as being ineffective).

Gambling Bill
Schedule 9 — Exempt Lotteries
Part 4 — Small Society Lotteries
173

25
Each ticket in a customer lottery—
(a)
must state the name and an address of the promoter of the lottery,
(b)
must specify the class of persons to whom the promoter is willing to
sell or supply tickets, and
(c)
must explain the condition in paragraph 24(2).
5
Price
26
The price payable for each ticket in a customer lottery—
(a)
must be the same,
(b)
must be shown on the ticket, and
(c)
must be paid to the promoter of the lottery before any person is given
10
the ticket or any right in respect of membership of the class among
whom prizes are to be allocated.
Maximum prize
27
It must not be possible for the purchaser of a ticket in a customer lottery to
win by virtue of that ticket more than £50 (whether in money, money’s
15
worth, or partly the one and partly the other).
No rollover
28
The arrangements for a customer lottery must not include a rollover.
Frequency
29
A draw in a customer lottery must not take place during a period of seven
20
days beginning with a previous draw in—
(a)
that customer lottery, or
(b)
another customer lottery promoted on the business premises.
Part 4
Small Society Lotteries
25
The exemption
30    (1)
A lottery is exempt if—
(a)
it is promoted wholly on behalf of a non-commercial society (“the
promoting society”),
(b)
it is a small lottery (within the meaning of paragraph 31), and
30
(c)
the other conditions of a small society lottery specified in this Part are
satisfied.
      (2)
A lottery promoted wholly on behalf of a non-commercial society is referred
to in this Part as a small society lottery.
31    (1)
For the purposes of this Part a society lottery is a small lottery unless it is a
35
large lottery by virtue of any of sub-paragraphs (2) to (5).
      (2)
A society lottery is a large lottery if the arrangements for it are such that its
proceeds may exceed £20,000.

Gambling Bill
Schedule 9 — Exempt Lotteries
Part 4 — Small Society Lotteries
174

      (3)
A society lottery is a large lottery if it is promoted wholly or partly at a time
in a calendar year at which the aggregate of the promoting society’s
proceeds from society lotteries promoted wholly or partly during that year
exceeds £250,000.
      (4)
A society lottery is a large lottery if the arrangements for it are such that
5
(disregarding any other society lottery the sale of tickets for which is not
concluded) it may during its promotion become a large lottery by virtue of
sub-paragraph (3).
      (5)
If a society promotes a lottery that is a large society lottery by virtue of sub-
paragraph (2), (3) or (4) (“the first lottery”), any other society lottery
10
promoted by that society is a large lottery if it is wholly or partly
promoted—
(a)
after the beginning of the promotion of the first lottery and in a
calendar year during which the first lottery is wholly or partly
promoted, or
15
(b)
in any of the three calendar years successively following the last
calendar year during which the first lottery was wholly or partly
promoted.
Promotion
32
A small society lottery may be promoted only—
20
(a)
by members of the promoting society authorised in writing by the
society or, if it has one, its governing body;
(b)
by the holder of a lottery manager’s operating licence authorised in
writing by the society or, if it has one, its governing body.
Purpose of lottery
25
33
A small society lottery may be promoted for any of the purposes for which
the promoting society is conducted.
Minimum distribution for fund-raising purpose
34
The arrangements for a small society lottery must ensure that at least 20% of
the proceeds of the lottery are applied to a purpose for which the society is
30
conducted.
Maximum prize
35
It must not be possible for the purchaser of a ticket in a small society lottery
to win by virtue of that ticket (whether in money, money’s worth, or partly
the one and partly the other) more than £25,000.
35
Rollover
36    (1)
The arrangements for a small society lottery may include a rollover only if
each other lottery which may be affected by the rollover is a small society
lottery promoted by or on behalf of the same society.
      (2)
This paragraph is subject to paragraph 35.
40

Gambling Bill
Schedule 9 — Exempt Lotteries
Part 4 — Small Society Lotteries
175

Tickets
37
Each ticket in a small society lottery—
(a)
must be a document,
(b)
must identify the promoting society,
(c)
must state the name and an address of—
5
(i)
a member of the society who is designated, by persons acting
on behalf of the society, as having responsibility within the
society for the promotion of the lottery, or
(ii)
if there is one, the external lottery manager, and
(d)
must give the date of the draw (or each draw) in the lottery.
10
Price
38    (1)
The price payable for each ticket in a small society lottery—
(a)
must be the same,
(b)
must be shown on the ticket, and
(c)
must be paid to the promoter of the lottery before any person is given
15
the ticket or any right in respect of membership of the class among
whom prizes are to be allocated.
      (2)
Membership of the class among whom prizes in a small society lottery are
allocated may not be dependent on making any payment (apart from
payment of the price of a ticket).
20
Registration
39
The promoting society of a small society lottery must, throughout the period
during which the lottery is promoted, be registered with a local authority in
accordance with Part 5 of this Schedule.
Filing of records
25
40    (1)
The promoting society of a small society lottery must send to the local
authority with which the society is registered under Part 5 of this Schedule
a statement of the matters specified in sub-paragraph (2).
      (2)
Those matters are—
(a)
the arrangements for the lottery (including the dates on which tickets
30
were available for sale or supply, the dates of any draw and the
arrangements for prizes (including any rollover),
(b)
the proceeds of the lottery,
(c)
the amounts deducted by the promoters of the lottery in respect of
the provision of prizes (including the provision of prizes in
35
accordance with any rollover),
(d)
the amounts deducted by the promoters of the lottery in respect of
other costs incurred in organising the lottery,
(e)
any amount applied to a purpose for which the promoting society is
conducted, and
40
(f)
whether any expenses in connection with the lottery were defrayed
otherwise than by deduction from proceeds, and, if they were—
(i)
the amount of the expenses, and
(ii)
the sources from which they were defrayed.