Overview of lottery types and regulation
Lotteries are regulated under the Gambling Act 2005, which replaced the Lotteries and Amusements Act 1976. The Act sets out who can run lotteries, what types are allowed, and how they are licensed or registered.
The Gambling Commission regulates most gambling in Great Britain, except for the National Lottery and spread betting. Local authorities, including Trafford Council, register small society lotteries and deal with some local exemptions.
Types of lottery
There are two main categories of lottery under the Act:
- Licensed lotteries, such as large society lotteries and local authority lotteries, which must hold an operating licence from the Gambling Commission.
- Exempt lotteries, which do not need a licence but may need to register with the local authority.
These include:- small society lotteries
- incidental non-commercial lotteries
- private lotteries
- customer lotteries
How lotteries are defined
A lottery is any arrangement where:
- people pay to enter
- prizes are allocated to one or more participants
- winners are chosen wholly by chance or by a process that relies mainly on chance
Competitions based mainly on skill, judgement or knowledge are not lotteries. Free prize draws are also not lotteries, as there is no payment to enter.
How Trafford Council regulates lotteries
Trafford Council deals with registration of small society lotteries and provides advice on exempt lotteries.
We assess applications in line with our Statement of Gambling Principles, which explains how the licensing objectives apply locally.
If you are unsure what type of lottery you are planning, email licensing@trafford.gov.uk for advice.