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Lotteries licensing
A lottery is an arrangement where people pay to take part for the chance of winning a prize, allocated wholly or partly by chance. Promoting or running a lottery is illegal unless it falls into one of the permitted categories below.
Lotteries have a lower minimum participation age than most other gambling, 16 rather than 18.
Licensed lotteries
These are large society lotteries, and lotteries run for the benefit of local authorities. They're regulated by the Gambling Commission and require an operating licence.
A lottery counts as "large" if ticket sales for a single lottery are more than £20,000, or proceeds across all lotteries run by the society in a calendar year are more than £250,000.
Small society lotteries
These are where ticket sales for a single lottery are £20,000 or less, and total proceeds across all lotteries in a calendar year are £250,000 or less. You don't need an operating licence from the Gambling Commission, but you must register with us.
Small society lotteries must only support good causes, such as charity fundraising, or enabling participation in or supporting sport, athletics or a cultural activity. They cannot be run for private or commercial gain.
How to register
Registration is open-ended once granted, unless cancelled. You'll need to pay:
- a registration fee of £40 when you apply
- an annual fee of £20 each year after that
If you don't pay the annual fee, we may cancel your registration.
Applications must include a copy of your society's terms and conditions or constitution.
Documents you may need:
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Small Society Lottery Application Form
This document contains an application form for registering a non-commercial society with the Orkney Islands Area Licensing Board. It asks for basic details about the society, including its name, address, purpose and any charity number, as well as its history with gambling licences. It also collects contact details for the person applying, requires a signed declaration with a 40 pound registration fee, and outlines the rules on when applications might be refused.
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Small Society Lottery Returns Form
This document contains a return form used by small societies to report lottery details to the Orkney Islands Area Licensing Board under the Gambling Act 2005. It asks for key facts like ticket sale dates, prize values, total proceeds, and how funds were spent. Two adult members and the lottery promoter must sign the form and prove they have written authority to do so. The completed form must reach the Legal Clerks Office at the Council Offices in Kirkwall within 3 months of the draw or ticket sale end date. Societies can face fines or jail time if they miss this deadline or give false information.
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Keeping records and submitting returns
You must keep records of any unsold or returned tickets for one year from the date of the draw. We can inspect these records at any time.
After each lottery, you must submit a Returns form, signed by 2 society members aged 18 or over. This must be submitted no later than 3 months after the draw, or, for instant lotteries or scratch cards, within 3 months of the last date tickets were on sale.
Tickets
Each ticket must show:
- the name of the promoting society
- the price
- the name and address of the person within the society responsible for the lottery, and of the external lottery manager, if there is one
- the date of the draw, or enough information to work it out
There's no restriction on ticket price, but every ticket in a lottery must cost the same, and payment must be taken before entry into the draw.
Tickets can be sent electronically, for example by email or text message, provided the recipient can keep or print them.
Costs and prizes
Up to 80% of proceeds can be spent on prizes and expenses combined. At least 20% of proceeds must go to the society's purpose.
You can roll over unclaimed prizes between lotteries, as long as each one is a small society lottery run by the same society.
If you're considering alcohol as a prize, contact us first to make sure this doesn't breach licensing law.
Other exempt lotteries
Three further types of lottery are exempt and don't need registration or an operating licence:
- incidental non-commercial lotteries
- private lotteries
- customer lotteries
Documents you may need:
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Exempt Incidental Non-Commercial Guidance
This document contains guidance from the Orkney Islands Area Licensing Board on incidental non-commercial lotteries under the Gambling Act 2005. It explains that these are lotteries held at events like school fetes where all money raised goes to good causes rather than private gain. Organizers must follow specific rules, such as spending no more than £500 on prizes and £100 on expenses, selling tickets only at the venue during the event, and announcing the results before it ends. For more help, you can contact the Legal Clerks' Office by emailing licensing@orkney.gov.uk or calling 01856 873535 on extensions 2229 / 2232.
Please be aware that this summary has been generated using AI.
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Exempt Private Lotteries Guidance
This document contains guidance on private lotteries under the Gambling Act 2005. It explains the 3 sub-categories of exempt private lotteries, which are private society lotteries, work lotteries and residents' lotteries. The rules state that tickets can only be sold to specific groups connected to the society, workplace or residence, and lotteries cannot be run for profit or held on vessels. Advertisements are restricted to the premises, rollovers are banned, and tickets must follow specific rules on pricing and information. You can contact the Legal Clerks' Office at the Council Offices in Kirkwall by email at licensing@orkney.gov.uk or by calling 01856 873535 on extensions 2229 / 2232 if you need any more help.
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Exempt Customer Lotteries Guidance
This document contains guidance from the Orkney Islands Area Licensing Board on customer lotteries under the Gambling Act 2005. It explains that customer lotteries are run by business owners who sell tickets only to people on their premises, with strict rules on advertising, prize limits of £50, and ticket details. These lotteries cannot take place on vessels or within 7 days of another customer lottery at the same business. For more help, you can visit orkney.gov.uk or contact the Legal Clerks' Office by email at licensing / orkney.gov.uk or phone 01856 873535.
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Free draws and prize competitions
Free draws and prize competitions aren't covered by gambling law.
Documents you may need:
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Free Draws and Prize Competitions Guidance
This document contains guidance from the Orkney Islands Area Licensing Board explaining that free draws and prize competitions are not controlled by the Gambling Act 2005. It highlights that free draws cost nothing to enter, while prize competitions rely on skill, judgement or knowledge rather than pure chance. If you need more help, you can contact the Legal Clerks' Office at the Council Offices in Kirkwall by emailing licensing@orkney.gov.uk or by calling 01856 873535 on extensions 2229 / 2232.
Please be aware that this summary has been generated using AI.
Race nights
Depending on how it's run, a race night may count as non-commercial gaming, or as an incidental non-commercial lottery.
Documents you may need:
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Race Nights Fact Sheet
This document contains guidance from Orkney Islands Area Licensing Board on holding race nights under the Gambling Act 2005. It explains when events can run without a licence, including non-commercial prize gaming, equal chance gaming, incidental lotteries and private gaming, and sets out rules on private profit, charges, prizes and costs. It also notes that participants must be told which good cause benefits, and gives contact details for further information, while advising organisers to seek legal advice if unsure.
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