Do you want to start a lottery business? Are you looking for guidelines to run your very own lottery? Then, this post is just for you as it looks at how you can start a lottery business. The first thing that you should keep in mind is the fact that the gambling industry in the UK stands out because of its primary purpose of working towards raising money for charity. According to the law, at least 20% of revenue has to be donated by lotteries to good causes in the UK. The Gambling Commission strictly watches over the gambling industry. Thus, if you want to start a lottery business, you will need to donate at least 20% of the revenue to charity. In the period 2015 to 2016 alone, 1.9 Billion GBP was generated.
UK Regulations for Lottery Businesses
The lottery industry in the UK is regulated by the Gambling Commission which follows the Gambling Act 2005. Thus, if you want to start a lottery business, you will need to comply with the said Act. Read on to learn more about what steps need to be taken.
Licensing
The first thing that needs to be done is to determine if a license is required. There are different types of lotteries in the UK. While some require a license, many do not. However, all lotteries have to be non-commercial in nature and must give back to the society.
Small Society Lotteries
Small society lotteries are required to earn a maximum of 20,000 GBP in ticket sales for each lottery or 250,000 GBP a year and at least 20% of the revenue has to be donated to good causes. Such lotteries have to be registered with the local authority.
Large Society Lotteries
To run a large society lottery, a license is required from the Gambling Commission. Over 20,000 GBP need to be raised for each lottery and more than 250,000 GBP each year, and 20% of the proceeds need to be donated to good causes. A remote operating license is needed by large society lotteries if the lottery could be played remotely such as by telephone or over the internet. Lottoland offers online lottery bets.
Local Authority Lotteries
The local authority lottery has to generate more than 20,000 GBP for each draw or 250,000 a year. It can use its net proceeds for covering running costs. Such a lottery must obtain a Gambling Commission license and a remote operating license in case it could be played remotely.
Exempt Lotteries
Lotteries that are exempt from obtaining a license include private society lotteries which raise money for supporting running costs. The same applies for work and residents’ lotteries which operate for a charitable cause and are only played by residents of a specific area or colleagues.
Conclusion
Starting a lottery business is not an easy task. If you want to run a lottery business, you will also need to sell tickets responsibly, follow the financial regulations, and submit lottery reports.