Share

Consultation on charity lottery regulation reform launched

Consultation on charity lottery regulation reform launched
News

Consultation on charity lottery regulation reform launched

Fundraising | Celina Ribeiro | 19 Apr 2012

Current lottery regulations are holding charities back from raising more money according to a consultation document which will form the basis of a campaign to push for lottery regulation reform.

The consultation document released today follows on from a summit in early February in which charities and lottery operators discussed the current licensing regime and its impact on charity income.

Joe Saxton, of nfpSynergy, who called the summit and authored the document, is asking charities to put forward their views on a series of proposed demands to take to government and local authorities.

One of the more contentious issues is the 80:20 rule, which demands that charities running lotteries must receive at least 20 per cent of the stake after expenses and the prize draw is taken out. For many charities this poses a significant challenge due to the costs associated with lotteries. The Institute of Fundraising is calling for the rule to be abolished altogether, but the document itself proposes that the 80:20 calculation be made on a charity’s entire lottery programme over the course of five years, rather than one and that associated income, such as donations made alongside ticket purchases, be included in the overall turnover.

The strongest language is saved for the £10m a year turnover limit for each society lottery programme and £4m for any one draw, which is described as “farcical” and preventing fair competition. The document recommends that the cap be scrapped entirely. A survey conducted by nfpSynergy and Fundraising magazine. however, found that this was not a major issue for most charities, many of which operate well under the £10m limit. Last July, the DCMS pledged to look into the issue of limits, but no reforms have yet been announced.

The general regulatory environment in which charity or society lotteries also requires significant reform, the document suggests. Charities running a lottery turning over less than £1m a year should not have to get a licence from the Gambling Commission and rather than forcing charities which run online lotteries to obtain a separate remote licence for doing so, there should be one licence allowing charities to run both paper-based and online lotteries.

The document also calls for charities to be relieved of the obligation to contribute to the fund to address problem gambling, given that the prevalence of problem gambling related to lotteries – although not scratch cards – is extremely low.

Responses to the consultation should be made by 28 May, 2012. 

Comments

[Cancel] | Reply to:

Close »

Community Standards

The civilsociety.co.uk community and comments board is intended as a platform for informed and civilised debate.

We hope to encourage a broad range of views, however, there are standards that we expect commentators to uphold. We reserve the right to delete or amend any comments that do not adhere to these standards.

We welcome:

  • Robust but respectful debate
  • Strongly held opinions
  • Intelligent relevant discussion
  • The sharing of relevant experiences
  • New participants

We will not publish:

  • Rude, threatening, offensive, obscene or abusive language, or links to such material
  • Links to commercial organisations or spam postings. The comments board is not an advertising platform
  • The posting of contact details for yourself or others
  • Comments intended for malicious purpose or mindless abuse
  • Comments purporting to be from another person or organisation under false pretences
  • Gratuitous criticism, commentary or self-promotion
  • Any material which breaches copyright or privacy laws, or could be considered libellous
  • The use of the comments board for the pursuit or extension of personal disputes

Be aware:

  • Views expressed on the comments board are left at users’ discretion and are in no way views held or supported by Civil Society Media
  • Comments left by others may not be accurate, do not rely on them as fact
  • You may be misunderstood - sarcasm and humour can easily be taken out of context, try to be clear

Please:

  • Enjoy the opportunity to express your opinion and respect the right of others to express theirs
  • Confine your remarks to issues rather than personalities

Together we can keep our community a polite, respectful and intelligent platform for discussion.

Charities are not doing enough to defend themselves over pay, conference hears

1 Jul 2015

Charities are not doing enough in response to attacks on chief executive pay, a Directory of Social Change...

VAT tribunal judgment on investment management fees worth tens of millions to the sector

30 Jun 2015

Charities should be able to reclaim VAT on investment management fees, a tribunal has ruled, in a move...

St John Ambulance records first operating surplus in seven years

30 Jun 2015

First-aid charity St John Ambulance has recorded its first operating surplus in seven years, as its income...

Breast Cancer Now loses a quarter of its staff after merger

30 Jun 2015

Breast Cancer Now has reduced staff numbers by a quarter since the merger, through a mix of redundancy...

Charity ordered to seek advice on reclaiming £130,000 missing funds from former trustee

30 Jun 2015

A charity has been ordered to seek independent advice on reclaiming £130,000 of missing income after...

Trustees must answer to the public over high chief executive pay, says minister for civil society

29 Jun 2015

Trustees must do more to give the public confidence in charities, and must make sure charitable donations...

Contactless donations set to soar, CAF study suggests

24 Jun 2015

There is a “massive future” for charity donations using contactless payment technology, according...

RBG Kew denies pressuring TripAdvisor into deleting hundreds of negative reviews

22 Jun 2015

Kew Gardens has denied claims that it pressured travel site TripAdvisor into deleting negative reviews...

JK Rowling charity scoops top prize at Charity Awards 2015

19 Jun 2015

A charity set up by JK Rowling ten years ago to close children’s institutions and orphanages in developing...

Join the discussion

Twitter button

@CSFundraising