Draft legislative reform (exempt lotteries)
1. This draft Legislative Reform Order (LRO) has
been laid by the Department for Culture, Media and Sport (DCMS)
with an Explanatory Document (ED). It is proposed to be made
under section 1 of the Legislative and Regulatory Reform Act 2006
("the 2006 Act"), which allows a Minister to make provision
by order for removing or reducing any burden resulting directly
or indirectly from legislation.
2. DCMS states that lotteries are illegal unless
they fall into one of the categories specifically permitted by
law. Apart from the National Lottery (with its own dedicated legislation),
the relevant law is contained in the Gambling Act 2005 ("the
2005 Act"), which creates eight categories of permitted lottery.
Two of these categories (large society lotteries and local authority
lotteries) require a licence from the Gambling Commission. The
remaining categories of lottery are exempt from requiring a licence.
Small society lotteries must be registered with a local authority,
but the remaining exempt lotteries - customer lotteries, incidental
non-commercial lotteries and the three categories of private lottery
(private society lotteries, work lotteries and residents' lotteries)
- do not require either a licence or registration. Raffles, tombolas,
sweepstakes, etc are all classed as lotteries.
Incidental non-commercial lottery under the 2005
3. An incidental non-commercial lottery is one
that is incidental to a non-commercial event. Examples may include
a lottery - possibly in the form of a raffle - held at a school
fete or at a social event such as a dinner dance. An event is
non-commercial if all the money raised by the organiser at the
event - including entrance fees, sales of food and drink, etc.
- goes entirely to purposes that are not for private gain. A
fundraising social event with an entrance fee would therefore
only be non-commercial if all the money raised by the organiser
at the event went to a charity or good causes, but it would not
be non-commercial if the money were retained by the organiser
for private gain.
Private lotteries under the 2005 Act
4. Three types of private lotteries are permitted
by the 2005 Act: private society lotteries; work lotteries; and
residents' lotteries. Private lotteries must comply with conditions
relating to advertising: no advertisement for a private society,
work or residents' lottery may be displayed or distributed except
at the society or work premises, or the relevant residence, nor
may it be sent to any other premises. They must also comply with
other conditions in the 2005 Act relating to tickets: a ticket
in a private lottery may be sold only by or on behalf of the promoters;
tickets are non-transferable; and each ticket must state the name
and address of the promoter of the lottery, the people to whom
the promoter can sell or supply tickets and the fact that they
are not transferable. Work and residents' lotteries cannot make
any profits, and private society lotteries can only be promoted
for the purposes of the society.
5. The draft LRO would amend Schedule 11 of the
2005 Act to deregulate incidental non-commercial lotteries and
private lotteries, in defined circumstances. As regards incidental
non-commercial lotteries, the LRO would allow such lotteries to
be held at both non-commercial and commercial events, and allow
the results of such lotteries to be announced after such
an event. As regards private lotteries, the LRO would
allow private society lotteries to be promoted for any charity
or good cause; allow the promoters of work and residents' lotteries
to make a profit provided it was for a purpose other than private
gain; and remove the requirement in all private lotteries for
a lottery ticket to contain certain information.
Tests in the 2006 Act
6. We are satisfied that the Order meets the
tests set out in the 2006 Act and is not otherwise inappropriate
for the Legislative Reform Order procedure.
7. DCMS has proposed that the draft LRO be subject
to the negative resolution procedure. In this regard, we note
that the Government's own guidance on LROs says that the negative
resolution procedure "affords the least Parliamentary influence
over a LRO and would therefore be most suitable for minor and
technical LROs." In a letter of 28 January 2015 about the
post-legislative assessment of the Legislative and Regulatory
Reform Act 2006, the Rt Hon Matthew Hancock, MP, Minister of State
for Business, Enterprise and Energy, confirms that "both
the LRO Guide for Policy Officials and BRE advise policy teams
that the negative procedure is restricted to technical amendments".
8. In the Explanatory Document DCMS acknowledges
that the changes proposed in the draft LRO "are not limited
to technical amendments" (paragraph 4.17), while also stating
that that the purposes for which exempt lotteries may be held
will not change. We consider that, while that is true for
incidental lotteries, it is not true for private lotteries. In
the case of private society lotteries, which currently are restricted
to the purposes of the society, under the LRO they would
be capable of being held for any purpose other than private gain.
Similarly, in the case of work and residents' lotteries, which
currently cannot be held for the purposes of making a profit,
under the LRO it would be possible for them to be held for the
purposes of making profits, provided that such profits were for
other than private gain. Moreover, as regards incidental lotteries,
while the purposes would remain the same, the LRO would make a
significant change in allowing an incidental lottery to be
promoted at a commercial event (whereas currently the restriction
is to non-commercial events).
9. We consider that the legislative changes
are in themselves substantive; that the Department should have
followed more closely the Government's own guidance in the matter
of Parliamentary procedure; and that the draft LRO should attract
the affirmative resolution procedure.
Modern Slavery Bill: Government Response
10. We considered this Bill in our 10th Report
(HL Paper 70). The Government have now responded by way of a letter
from Lord Bates printed at Appendix 1.