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Raffles and small society lotteries
Raffles at school fetes, clubs and charity events are lotteries and follow special rules. This page explains the main types, based on one local council's published guidance.
Raffles are lotteries
A raffle sells tickets and picks winners by chance, so it is a lottery in law. The Gambling Commission says all lotteries are regulated under the Gambling Act 2005 and cannot be run for commercial or private gain. That is why raffles are run by charities, clubs and societies, or as part of an event. The rules differ by type. Our prize draw vs competition vs lottery page explains the difference from free draws.
Types of lottery, according to East Hertfordshire District Council
The council's page lists three types. Each local authority publishes its own guidance, so check yours.
Society lotteries
Run by organisations such as Scout groups and parent-teacher associations to raise money for charitable, sporting, educational or similar purposes, not for private gain.
Small lotteries incidental to exempt entertainments
The council defines these as lotteries "incidental to exempt entertainments", such as a bazaar, fete or dance. The council lists these key limits:
- Prizes must not be money prizes.
- Up to £50 may be taken for the expenses of buying prizes.
- Tickets must be sold, and results announced, during the entertainment.
Private lotteries
For members of one society, or for people who work or live on the same premises. Every ticket must be the same price, stated on the ticket. Advertising is limited to a notice on the premises or on the ticket, and tickets must not be sent by post.
Small society lotteries: limits listed by the council
| Rule | Limit |
|---|---|
| Proceeds from one lottery | Not more than £20,000 |
| Total proceeds from all lotteries run by the society in a calendar year | Not more than £250,000 |
| Share of proceeds going to the society's purpose | At least 20% |
| Maximum prize per ticket | £25,000 |
These figures are from the council's page. Check your own council and the Gambling Commission for current limits before you plan a lottery.
Registration
A society must be established wholly or mainly for charitable purposes, athletic sports, games or cultural activities, or other purposes that are neither for private gain nor commercial. A society running lotteries in more than one local authority area registers with the authority where its head office or base is. The council says registrations run from 1 January to 31 December, and a return must be sent by the end of the third month after the lottery, certified by two members over 18 who are not the promoter.
If you are buying a raffle ticket
- Check who is running it and for what purpose.
- For larger or online raffles, ask whether the society is registered with its local authority.
- Do not pay by unusual methods to unknown people.
- Remember that you are buying a chance, not making a donation.
Online raffles and social media
Online raffles are still lotteries. Be careful with posts that ask you to pay a friend to join a raffle on social media, as these may not be properly run; see spotting scam competitions and social media giveaways.
This is general information, not legal advice. Organisers should contact their local authority licensing team.
Frequently asked questions
Do I need a licence for a raffle at a school fete?
A small lottery incidental to an exempt entertainment, such as a fete, has its own rules. According to East Hertfordshire District Council these include no money prizes and tickets sold and drawn during the event. Check with your local council.
What is a small society lottery?
A lottery run by a registered non-commercial society. East Hertfordshire's page lists limits of £20,000 per lottery, £250,000 per year, at least 20% to the society's purpose and a maximum prize of £25,000.
Can a business run a raffle for profit?
No. The Gambling Commission says lotteries cannot be run for commercial or private gain.