As a result, many operators will be planning raffles/ lotteries as a fun way of engaging customers and employees. However, there are several rules’ venues must follow, so here are some top tips to ensure everyone remains a winner.
This type of lottery can be held at any type of event held at a pub / premises whether it is commercial or not, provided that the lottery/raffle is incidental to the main event and that all the lottery proceeds are use for charitable purposes.
The charity raffle offered to your customers must be held at a specific event such as a Christmas party or screening of a World Cup Final.
The event itself does not have to be held in aid of the charity but there are limits as to how the raffle can be provided including:
- You can either make the lottery draw during or after the event. You should make it clear to participants when you'll be announcing the result of the draw.
- A maximum of £500 can be deducted from ticket sales for prizes although additional prizes can be donated.
- A maximum of £100 can be deducted to cover the costs of any expenses such as tickets.
- You must provide physical tickets to those taking part.
- 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.
- There cannot be a rollover.
Workplace lottery/raffles – Often used as a workplace Christmas parties
These can also be used to raise funds for charity, but the following criteria must be followed:
- There cannot be a rollover.
- Raffles must only be run on a single set of premises.
- All participants must work on those premises.
- You must provide physical tickets to each person participating. You cannot sell tickets online or via email for example.
- People must pay the same price for each ticket and you can only sell physical tickets to colleagues when you’re all at your place of work.
- The rights on the ticket must be non- transferable - you cannot pass your ticket to someone else.
- The draw must take place on the business’ physical premises.
Note that if you work at a venue with a gambling premises licence you cannot have a lottery/raffle.
A customer lottery/ raffle is a lottery run by the occupiers of a premises who sell tickets only to customers present on the premises.
- You cannot make a profit from a customer lottery, and you cannot use them for fundraising. All proceeds from tickets sales have to be spent on prizes (less deductions for any reasonable expenses incurred, such as the cost of the tickets). It is important to note that a customer lottery is not suitable for charity fundraising (instead you could consider a charity raffle – see above).
- The maximum value per prize cannot exceed £50. The prize can be cash, goods or a mixture of both.
- Advertisements can only be on the premises. There cannot be any promotional material available online, via text message or outside of the premises itself.
- Tickets can only be sold to a customer when they are on the premises.
- Every ticket must give the name and address of the organiser and the price of the ticket. It must also state that the tickets are only available to customers of the premises and that the ticket is non- transferrable.
- Only one draw per 7 days is permitted to take place on the same business premises.
- You can only run a customer lottery from a single set of physical business premises and the draw must take place on these premises. It can’t be done online.
- The rollover of prizes is not permitted.
- Children under 16 cannot take part.
Further guidance can be found on the Poppleston Allen website.