Lotteries, raffles and auctions
Lotteries, raffles and auctions are a great way to boost your fundraising and raise vital funds to help beat prostate cancer. They’re a brilliant way to raise money at events such as fairs, dinners and festivals.
When planning, it’s important to check what’s needed to make sure your lottery, raffle or auction follow any gambling regulations that may apply, including laws relating to the process of allocating prizes fairly.
What is a lottery?
A lottery is a game where people buy a chance to win a prize. Most often this will be a lottery ticket, bought for a set price (e.g, £1), where each ticket has an equal chance of winning.
What is a raffle?
A raffle is a type of lottery, with again people buying a chance to win a prize. Raffles tend to have a range of prizes available and the ticket sales and raffle draw tend to happen as part of the same event, whereas a lottery tends to have a cash prize based on ticket sales.
What is an auction?
An auction is where one or more items are sold to the highest bidder.
Setting up a lottery?
There are several types of lotteries (which includes raffles, sweepstakes and more) and some will need a licence depending on who they’re for, where they’re being held and how much the proceeds are.
We’ve listed some of the most popular lotteries below, but you can find the full guidelines on the Gambling Commission’s website, and the Fundraising Regulator’s Code of Fundraising Practice. We strongly encourage you to read these.
- Lotteries at events do not require a licence because they are classed as incidental lotteries (although you should get permission from the event organiser or site owner). This includes tombolas, raffles and sweepstakes.
- You can only run an incidental lottery to raise money for charity, not for private gain.
- You can sell tickets to anyone at the event and you must provide physical tickets to those taking part.
- There is no limit on how much you can charge for a ticket, and you can apply discount tickets for multiple purchases, such as buy one get one free.
- Tickets can only be sold at the location of the event and whilst the event is taking place.
- You can’t sell tickets online (which includes social media) or in advance of the event.
- The lottery can’t be the main reason for holding the event. It must take place alongside a commercial or non-commercial one-off event.
- Promoters of the lottery may deduct from the proceeds of the lottery no more than £100 for expenses and no more than £500 spent on prizes.
- At an incidental lottery you can sell tickets to anyone attending the event, however, if the prizes include alcohol you must not give alcohol as a prize to anyone under 18
- A small society lottery is promoted on behalf of a non-commercial society for:
- charitable purposes
- the purpose of enabling participating or supporting sport, athletics or cultural activity
- any other non-commercial purpose other than private gain - The proceeds must be less than £20,000 for a single draw or less than £250,000 over a calendar year.
- You don't need a Gambling Commission licence, however you must register your lottery with your local licensing authority before marketing or selling tickets. You can find your local council on GOV.UK
- A large society lottery is the same as above, however proceeds exceed £20,000 for a single draw or are more than £250,000 in any one year.
- A large society lottery requires a lottery operating licence so you must have permission from the Gambling Commission before marketing or selling tickets. You can find out more about the licenses needed on the Gambling Commission website.
Check out our top tips
Start planning
It can take time to collect prizes so it’s always a good idea to start early. Get in touch with the team for a letter of authority confirming you’re fundraising for Prostate Cancer UK, which will support you when approaching friends, family and local businesses for prizes.
Stock up on tickets!
You can purchase raffle tickets online or in stationary shops.
Keep it legal
You will need to:
- Check what the required legal age is for players taking part (this changes for different lotteries - check our lottery guidelines above).
- Keep track of any expenses and other admin costs and only deduct this in line with what type of lottery you’re running.
- Let people know that you can’t claim Gift Aid on ticket sales or purchases as the donation is made in lieu of a prize.
Spread the word
Make sure everyone knows about the prizes up for grabs so they can purchase their tickets and get excited for the event. Consider including them on posters and share the prizes on social media ahead of the event. Don’t forget to thank any local businesses or friends for donation of prizes!