Raffle Glossary

A reference of terms used in UK raffle and lottery regulation, drawn from the Gambling Act 2005, Gambling Commission guidance, and standard industry usage.

A

Advance sales. The sale of raffle tickets before the date of the draw. Advance sales move a raffle out of incidental lottery status and into small society lottery territory, requiring local authority registration.

C

Counterfoil. The portion of a raffle ticket retained by the seller (also called a stub). The counterfoil carries the same number as the ticket given to the buyer and typically includes space for the buyer's name and contact details. Used to identify winners after the draw.

D

Draw. The process of selecting winning tickets from the pool of sold tickets. The draw may be physical (tickets drawn from a container), mechanical (tombola drum), or digital (random number generator). See The Raffle Draw.

E

Exempt lottery. A lottery that is exempt from licensing and registration requirements under the Gambling Act 2005. Incidental lotteries and private lotteries are both categories of exempt lottery.

Expenses. Costs incurred in running the raffle — ticket printing, promotion, venue hire, equipment. For incidental lotteries, no more than £100 may be deducted from proceeds for expenses. For small society lotteries, expenses should be reasonable and proportionate.

External lottery manager (ELM). A third party licensed by the Gambling Commission to manage lotteries on behalf of societies. An ELM may hold a remote lottery operating licence, allowing it to sell tickets online on behalf of the society. See Online Raffles.

F

50/50 raffle. A raffle format where the prize is a percentage (typically 50%) of the total ticket sales. Also called a half-time draw or split-the-pot. See 50/50 Raffles.

Free draw. A prize competition or draw where no payment is required to enter. Because entry is free, a free draw is not a lottery under the Gambling Act 2005 and is not subject to lottery regulation. The free entry route must be genuine and clearly communicated.

G

Gambling Act 2005. The primary UK legislation governing lotteries, including raffles, in England, Wales, and Scotland. Establishes the Gambling Commission, defines lottery types, sets thresholds, and prescribes penalties for non-compliance.

Gambling Commission. The national regulator for gambling in Great Britain. Issues operating licences for large society lotteries and remote lotteries. Publishes guidance on all lottery types. Has enforcement powers across England, Wales, and Scotland.

Good causes. The charitable, sporting, cultural, or other non-commercial purposes for which a society was established. For small society lotteries, at least 20% of the proceeds from each draw must be applied to the society's good causes.

H

Half-time draw. A raffle conducted at the half-time interval of a sporting event. Typically operates as an incidental lottery or a 50/50 draw. See Sports Club Raffles.

I

Incidental lottery. A lottery held at an event where tickets are sold and the draw takes place during the event. No licence or registration is needed. Subject to a £500 prize deduction limit and £100 expense limit. The most common type of raffle in the UK. See Raffles Without a Licence.

L

Large society lottery. A lottery run by a non-commercial society that exceeds the small society thresholds (£20,000 per draw or £250,000 annually). Requires an operating licence from the Gambling Commission. Per-draw limit is £5,000,000; annual limit is £50,000,000.

Local authority. The district, borough, or unitary council responsible for registering small society lotteries. The relevant local authority is the one where the society's principal office is located.

Lottery. An arrangement where participants pay to enter, one or more prizes are allocated, and the allocation is determined wholly by chance. A raffle is a type of lottery. The Gambling Act 2005 regulates all lotteries.

N

Non-commercial society. An organisation established and conducted for purposes other than private gain — charitable, sporting, cultural, or other non-commercial objectives. Only non-commercial societies may register for small society lotteries or apply for large society lottery licences.

P

Private lottery. A lottery restricted to a defined closed group: members of a single society (private society lottery), workers on a single premises (work lottery), or residents of a single premises (residents' lottery). No licence or registration is required. No external advertising is permitted. See Raffle Types.

Proceeds. The gross revenue from ticket sales before any deductions for prizes, expenses, or good causes. For a small society lottery, the £20,000 per-draw limit and £250,000 annual limit are both measured against proceeds, not profit.

Promoter. The named individual authorised by a society's governing body to conduct a lottery. The promoter's name and postal address must appear on every ticket (for small society lotteries). The promoter is personally responsible for the lottery's legal compliance. Not the society itself — a specific person.

R

Registration. The process by which a non-commercial society registers with the local authority to run small society lotteries. The initial fee is £40, with an annual renewal of £20. Registration must be confirmed before tickets are printed or sold.

Remote lottery operating licence. A licence issued by the Gambling Commission authorising the sale of lottery tickets through remote means — internet, email, telephone, or mobile app. Required for any online raffle ticket sales. See Online Raffles.

Return. The report a society must submit to the local authority after each small society lottery draw. Must be submitted within three months. Includes total proceeds, prize costs, expenses, amount to good causes, and whether an ELM was used. Must be signed by two authorised members. See Returns and Reporting.

Rollover. The carrying forward of an unclaimed prize or a portion of the prize pool to a subsequent draw. Not permitted for incidental lotteries. Permitted for small society lotteries, subject to the £25,000 maximum prize limit per draw.

S

Small society lottery. A lottery run by a registered non-commercial society within defined financial limits: £20,000 per draw, £250,000 annually, £25,000 maximum single prize. Registered with the local authority. The most common category for organised community raffles with advance ticket sales. See Small Society Lotteries.

Stub. See Counterfoil.

T

Tombola. A form of lottery where participants draw a ticket and immediately discover whether they have won. Winning tickets are typically those ending in 0 or 5 (a 1-in-5 win rate). Operates as an incidental lottery at events. See Tombola.

U

Uniform pricing. The requirement that all tickets in a small society lottery or large society lottery be sold at the same price. Bundle discounts and variable pricing are not permitted. This rule does not apply to incidental lotteries.

Unclaimed prize. A prize that the winner does not collect within the specified period (typically 28-30 days). The society's terms and conditions should state what happens to unclaimed prizes. See Unclaimed Prizes.

W

Work lottery. A type of private lottery restricted to people who work on the same premises. No licence or registration required. All participants must work at the same physical location. See Workplace Raffles.

Questions about raffle terminology? See our help centre.

Last reviewed: February 2026