Small Society Lotteries: The Legal Guide for Grassroots Clubs in England

Running a weekly lottery for your sports club is entirely legal in England — but only if you follow the rules set out in the Gambling Act 2005. Most small clubs operate well within the limits, but it's important to understand what you're required to do.

This guide covers everything a grassroots club treasurer or secretary needs to know. It's written in plain English, not legalese. If in doubt, speak to a solicitor or your local authority licensing team.

What is a small society lottery?

A 'small society lottery' is a lottery promoted by a non-commercial society for the benefit of that society. Non-commercial means the society's purpose is not to make a profit — a community sports club run for its members is a classic example.

To count as a small society lottery under the Gambling Act, the lottery must meet two thresholds:

• Proceeds (ticket sales) must not exceed £20,000 in a single lottery
• Total proceeds across all lotteries in a 12-month period must not exceed £250,000

For almost every grassroots club in England, these numbers are far above what you'll ever reach. A club with 100 supporters at £2 per week raises £10,400 a year — well under the £250,000 annual limit.

Do you need to register?

Yes. Any society wanting to run a small society lottery must register with the local licensing authority (usually your district, borough, or city council). You cannot legally run a lottery without this registration.

Registration is straightforward and typically costs between £40 and £60 as a one-off fee. You'll need to provide your club's name, address, the name of a responsible person, and the purpose for which the lottery proceeds will be used.

What must appear on lottery tickets?

Every lottery ticket (or ticket confirmation, in the case of an online lottery) must include:

• The name of the promoting society (your club's name)
• The price of the ticket
• The name and address of the person to whom a claim for a prize can be made
• The date of the draw
• Details of the process for claiming prizes

Club Fundraiser automatically includes all of this information on the confirmation emails sent to every supporter who buys a ticket, as well as on your club's public lottery page.

Prize limits

For a small society lottery, at least 20% of the proceeds must go to the promoting society (your club). In practice, the Club Fundraiser split — 45% to the club, 45% to the prize fund, 10% platform fee — comfortably meets this requirement.

There is no maximum prize limit for a small society lottery, as long as the prize fund doesn't exceed 55% of the lottery proceeds. Again, the 45/45/10 split is designed to comply with this.

Annual returns

You're required to submit an annual return to your local licensing authority within three months of each year-end. The return must include:

• The number of lotteries held during the year
• The total proceeds from all lotteries
• The total amount paid out in prizes
• The amount applied to the purposes of the society
• The expenses incurred in connection with the lotteries

Your Club Fundraiser dashboard provides all of this data in your draw history. We're working on an automated annual return export — in the meantime, the figures are all available in your admin panel.

Under-18s

It is illegal to sell lottery tickets to anyone under the age of 18. Club Fundraiser's ticket purchase flow includes an age confirmation, but clubs should be aware of this responsibility and not actively promote the lottery to under-18s.

What about 50/50 draws?

A 50/50 draw — where half the proceeds go to the winner and half to the club — is still a lottery under the Gambling Act 2005 and subject to the same registration requirements. Your existing small society lottery registration covers it, but you should check with your local authority if you're unsure.