On 16 July 2019, the Government published its long-awaited response to the consultation on society lottery reform conducted in summer 2018.
The Government announced that the annual sales limit would be increased from £10m to £50m. While this is a step in the right direction and is welcomed, the Council has been campaigning for an increase to £100m. The Minister advised that they will be considering an “additional licence tier” under which holders could operate under an annual limit of £100m, but subject to further licence conditions. The Council awaits this proposal with interest.
The limit for individual draws will be raised from £4m to £5m. Again, this is welcomed but is lower than the Council has been campaigning for.
The maximum prize limit will be increased in line with the individual draw limit, to £500,000 retaining the cap of a maximum of 10% of sales. The Council has been campaigning for the abolition of the 10% cap to enable charities to decide on their own prize structures, subject to a limit of £1m on the maximum prize.
The limits above which small society lotteries have to register with the Gambling Commission remain unchanged and there was no mention of any relaxation of the 20% rule for start-ups, for which the Council has also been campaigning.
The full text of the Government’s response can be found here.
The Council’s press release following the announcement can be found here.