The government yesterday formally launched a call for evidence into better regulation of society lotteries.
The Department for Culture, Media and Sport is calling for evidence to explore the “current balance across society lotteries, the National Lottery and competing gambling products in raising funds for good causes and maintaining player protection”.
The Culture, 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 per cent of proceeds must be returned to good causes.
The call for evidence includes questions asking whether the current regulations governing society lotteries are appropriate and whether the regulations from the 2005 Gambling Act are still fit for purpose in dealing with umbrella society schemes.
Helen Grant MP, the minister for sport and tourism, said in the foreword for the call for evidence: “The government is committed to ensuring that all lotteries are able to maintain and grow their share of the market for good causes while upholding player protection.
“We are also committed to maintaining the health of the National Lottery. We are now calling for evidence to help us look more closely at the current position and consider if changes are required in light of that evidence.”
The People’s Postcode Lottery, who published an independent report calling for a relaxation of regulations this month, welcomed the call for evidence.
The report revealed that the annual direct contribution made to good causes by players of the People’s Postcode Lottery could increase to as much as £130.2m, up by £120m, if regulations governing revenue and prize sizes were relaxed.
A spokesman from the People's Postcode Lottery said: “This is an exciting time for the sector with the Culture, Media and Sport Select Committee currently undertaking its own inquiry and the Government taking this latest step.
“It’s clear that the debate around how society lotteries should be regulated has shifted considerably over the last two years. The myth that applying heavier regulations on society lotteries will somehow deliver greater returns for good causes has been firmly dismissed.
"This call for evidence represents an opportunity to have a balanced and sensible debate about how best to reduce the unnecessary fundraising restrictions imposed on society lotteries and help organisations like People’s Postcode Lottery and our players achieve so much more for good causes.
“As has been demonstrated by Cebr’s new report, ‘The Economic Impact of People’s Postcode Lottery’, our players could generate as much as £130.2m for good causes with some very simple changes to existing regulations.”
The call for evidence will close on 4 March 2015. For information on how to submit evidence see here.
