Money raised for good causes through society lotteries grew 7 per cent to a record £163m between October 2012 and September 2013, according to mid-year figures released by the Gambling Commission.
But growth over the 12-month period has slowed compared to the previous year. Money going to good causes rose by 42 per cent in the previous year, from £107m between October 2010 and September 2011, to £152m in the same period in 2011/12.
Part of this increase is likely to be down to the creation of the Health Lottery, which began in 2011, and says it has raised £40m for good causes in the first two years.
The Lotteries Council said the figures are evidence that regulatory constraints are stopping society lotteries reaching their full potential.
The membership body representing society lotteries in the UK has been calling for “modest de-regulation” of the sector, particularly increasing the prize, draw and turnover limits imposed on charity lotteries.
It welcomed a Culture, Media and Sport Select Committee inquiry into society lotteries, launched last month, which will look at relaxing restrictions on the market.
Clive Mollett, chair of the Lotteries Council, said: “Whilst we are delighted that once again the Gambling Commission’s figures show charitable proceeds from society lotteries have increased, we are concerned that growth in the sector is not as strong as it could be due to the regulatory constraints within which our members operate.
“We urge the government to use their upcoming consultation, scheduled for this summer, to reduce some of the unnecessary restrictions imposed on society lotteries. Such a move would deliver more money for good causes at a time when they need it the most.”
Currently, unlike any other fundraising format it the UK, there are limits imposed on how much they can generate for good causes. Society lotteries are required to donate 20 per cent of their proceedings to good causes.
A report, commission by the Lotteries Council and the Institute of Fundraising, carried out by the Centre for Economics and Business Research, recommended a relaxation on individual prize, draw and turnover limits, in order to help grow the amount raised for good causes by society lotteries.
It highlighted that if heavier restrictions were to be imposed this could cost good causes almost £90m in support each year.
The research was commissioned in response to an announcement in December 2012 that the Department for Culture Media and Sport would consult on increasing the minimum contribution made by society lotteries to good causes. But the consultation has been on hold since the announcement.
Interested parties have until 6 October to submit written evidence to the CMS Committee’s inquiry on society lotteries. This will look at the role of society lotteries and their place within a sector that includes the Health Lottery, a network of 51 society lotteries, and the National Lottery.
Steve Greenberg, head of individual giving at RNIB, is among the charity fundraisers calling for deregulation of society lotteries. He said: “There is so much unnecessary and overly restrictive regulation around society lotteries for traditional charities like RNIB. With de-regulation in the sector we would like the administrative burden placed upon charities to be reduced and for society lotteries to be allowed to achieve so much more.”
Additional reporting by Jenna Pudelek.
