UK Raffle Law

Raffles in the United Kingdom are classified as lotteries under the Gambling Act 2005. A raffle meets the legal definition of a lottery when three elements are present: participants pay to enter, prizes are awarded, and winners are determined by chance. The Gambling Commission and local authorities share regulatory responsibility, and the rules that apply depend on the type of raffle being run, the value of the prizes, and how tickets are sold.

The Gambling Act 2005

The Gambling Act 2005 is the primary legislation governing lotteries, including raffles, in England, Wales, and Scotland. It replaced the Lotteries and Amusements Act 1976 and established the Gambling Commission as the national regulator.

Under the Act, operating a lottery without proper authorisation is a criminal offence. The Act defines a lottery as an arrangement where participants pay to participate, one or more prizes are allocated, and the allocation is determined wholly by chance. A raffle satisfies all three conditions.

The Act creates a tiered regulatory framework. Small-scale raffles at events require no registration or licence. Raffles run by societies selling tickets in advance require registration with the local authority. The largest operations require a licence from the Gambling Commission. The type of raffle determines which tier applies.

Regulators

Two bodies share regulatory responsibility for raffles in the UK.

The Gambling Commission issues operating licences for large society lotteries — those exceeding the small society thresholds. The Commission also publishes guidance on lottery regulations that applies to all raffle types, and has enforcement powers across England, Wales, and Scotland.

Local authorities (district, borough, or unitary councils) handle registration for small society lotteries. Each society registers with the local authority in the area where its principal office is located. Local authorities also have powers to refuse or revoke registration, inspect records, and prosecute non-compliance.

Licence, Registration, or Exemption

Not every raffle requires a licence. The Gambling Commission sets out three categories depending on how the raffle is structured.

Exempt lotteries (no licence or registration)

Certain raffles are exempt from licensing and registration requirements entirely. The most common exempt category is the incidental lottery — a raffle held at an event where the draw takes place during the event and ticket sales happen only at the event itself. The maximum prize value that may be deducted from the proceeds is £500, and no more than £100 may be deducted for expenses. The results must be announced at the event. Full rules are covered in Raffles Without a Licence.

Private lotteries are also exempt. These are raffles restricted to members of a single society, residents of a single premises, or employees of a single employer. No advertising outside the group is permitted, and all proceeds must go to prizes or the society's purposes — no profit to individuals.

Small society lottery (local authority registration)

A small society lottery is the most common category for organised raffles. It applies when a non-commercial society (charity, school PTA, sports club, church, community group) wishes to sell tickets in advance of the draw and the raffle operates within the following limits:

Registration is with the local authority where the society's principal office is located. The initial registration fee is £40, with an annual renewal of £20. The society must submit a return to the local authority within three months of each draw.

Large society lottery (Gambling Commission licence)

When a society's raffle exceeds the small society thresholds, an operating licence from the Gambling Commission is required. The annual licence fee starts at £196. Large society lotteries may have proceeds of up to £5,000,000 per draw and £50,000,000 per year. Most organisations running raffles will not reach these thresholds; in practice, the large society lottery category applies mainly to national charities and professional lottery operators.

Rules by Raffle Type

The legal obligations vary significantly by raffle type. The table below summarises the key rules for each category.

Key Thresholds

Several financial thresholds determine which rules apply and what limits an organiser must observe.

The £20,000 per-draw limit is the maximum total proceeds (not profit) for a single small society lottery draw. Proceeds means total ticket sales revenue before any deductions. If a single draw is expected to exceed £20,000, the society needs a Gambling Commission licence.

The £250,000 annual limit is the combined total of all lottery proceeds run by the same society in a calendar year. A society running multiple draws must track this cumulative total. Exceeding it triggers the need for a Gambling Commission licence for all future draws.

The £25,000 maximum prize is the ceiling for any single prize in a small society lottery. This applies to the retail or market value of the prize, not its cost to the organiser. A donated prize worth £30,000 at retail value exceeds the limit even if it cost the society nothing.

The 20% minimum to good causes requires that at least 20% of the proceeds from each small society lottery draw go to the purposes of the society. "Proceeds" means gross ticket sales. If a draw generates £5,000 in ticket sales, at least £1,000 must go to the charitable or society purposes — not to prizes or expenses.

Ticket Requirements

The information that must appear on a raffle ticket depends on the type of raffle being run. For a small society lottery, the Gambling Commission requires tickets to state:

• the name of the society
• the price of the ticket (which must be the same for every ticket)
• the name and address of the promoter (the individual responsible for the lottery)
• the date of the draw

Incidental lottery tickets have no statutory printing requirements, though numbered tickets are standard practice. Full details of what to include and common mistakes are covered in Ticket Requirements.

Record Keeping and Reporting

Small society lotteries must submit a return to the local authority within three months of each draw. The return must include:

• the date of the draw
• the total proceeds (gross ticket sales)
• the amounts deducted for prizes
• the amounts deducted for expenses
• the amount applied to the society's purposes
• whether the arrangement was done through an external lottery manager

The society must retain records of all lotteries for a minimum of three years. This includes ticket stubs, financial records, draw records, and copies of all returns submitted. Local authorities have the power to inspect these records at any time.

For large society lotteries, returns are submitted to the Gambling Commission rather than the local authority, and the reporting requirements are more detailed. Full guidance on returns is covered in Returns and Reporting.

The Promoter

Every raffle run under a small society lottery registration must have a named promoter. The promoter is a specific individual — not the society itself — who is authorised by the governing body of the society to run the lottery. The promoter's name and address must appear on every ticket.

The promoter is personally responsible for ensuring the lottery is conducted lawfully. This includes compliance with all ticket printing requirements, sales rules, financial limits, and reporting obligations. In practice, the promoter is usually the treasurer, secretary, or chair of the organising committee.

For incidental lotteries, there is no statutory requirement to name a promoter, but identifying a responsible individual is standard good practice.

Age Restrictions

Under the Gambling Act 2005, no person under the age of 16 may buy a raffle ticket for any lottery. This applies to all raffle types, including incidental lotteries at events. The restriction is on purchasing — there is no statutory prohibition on a child winning a prize or being present during a draw.

Sellers must take reasonable steps to verify that buyers are aged 16 or over. At school events, this means raffle tickets should be sold to parents and adult visitors, not to pupils.

Alcohol as Prizes

Including alcohol as a raffle prize is permitted, but the organiser must comply with the Licensing Act 2003. If alcohol is sold (including through a raffle), the event requires a premises licence, temporary event notice (TEN), or the alcohol must be supplied free of charge.

In practice, most raffle organisers include alcohol in hampers or prize bundles that are won rather than purchased. The raffle ticket is payment for entry into the draw, not a purchase of alcohol. However, the position is not without legal nuance, and organisers of regular pub or club raffles where alcohol is routinely offered as the primary prize should check their premises licence conditions.

Cash Prizes and Tax

Raffle prizes — including cash prizes — are not subject to income tax or capital gains tax for the winner. Lottery winnings are exempt from tax under UK law regardless of the amount.

For the organising society, raffle proceeds are treated as trading income if the society is a charity. This is normally covered by the charity's trading exemption, provided the raffle is conducted for the charity's purposes and the proceeds are applied accordingly.

Gift Aid cannot be claimed on raffle ticket sales. A raffle ticket is a payment in exchange for the chance to win a prize, not a donation. This applies regardless of whether the raffle is run by a registered charity.

Raffling a House or Car

High-value prize raffles — particularly those offering houses, cars, or other assets worth tens of thousands of pounds — attract additional scrutiny. If the prize value exceeds £25,000, the raffle cannot operate as a small society lottery and requires a Gambling Commission licence.

Many promoters of house or car raffles attempt to structure the arrangement as a prize competition (based on skill rather than chance) or a free draw (no payment to enter) to avoid lottery regulation. The Gambling Commission has published specific guidance on these arrangements and has taken enforcement action where the structure does not genuinely avoid the definition of a lottery.

Penalties for Non-Compliance

Operating an unlicensed lottery is a criminal offence under the Gambling Act 2005. Penalties include:

• a fine of unlimited amount
• imprisonment of up to 51 weeks (in England and Wales)
• both a fine and imprisonment

Local authorities can also revoke a society's registration, preventing it from running future lotteries. The Gambling Commission has the power to revoke operating licences and take enforcement action against individuals.

In practice, most enforcement action relates to societies operating without registration, failing to submit returns, or exceeding the per-draw or annual limits. Problems usually arise when a society's raffle grows in scale without its compliance keeping pace.

Northern Ireland

Northern Ireland is not covered by the Gambling Act 2005. Lotteries in Northern Ireland are governed by the Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985. The regulatory framework is broadly similar — small lotteries, society lotteries, and exempt lotteries exist — but the thresholds, registration process, and enforcement body differ.

Organisations operating raffles in Northern Ireland should contact the Department for Communities, which oversees gambling regulation in the jurisdiction.

Scotland

Scotland falls under the Gambling Act 2005, and the same rules apply as in England and Wales. However, local authorities in Scotland may have additional requirements or different processing times for small society lottery registration. The licensing board structure in Scotland also differs from England and Wales, which can affect premises-related lottery activities.

Societies registering in Scotland should contact their local authority's licensing team directly to confirm the registration process and any local requirements.

Questions about raffle law? See our help centre.

Last reviewed: February 2026