New transparency rules for society lottery operators

The Gambling Commission has confirmed that new transparency rules requiring society lottery operators to provide greater clarity to consumers regarding ticket proceeds will be introduced in April 2018.

The new rules, which will be introduced as new licence conditions attached to lottery operating licences, will require lotteries to make it clear to consumers exactly which non-commercial society their ticket sales will benefit.

Each year, operators will also be required to publish further information identifying what proportion of money raised from ticket sales was used directly by these societies or charities for their own purposes.

The new rules will take effect from 4 April 2018 onwards.

The news comes in response to a consultation launched in July 2017, entitled “Changes to society lottery and ELM licence requirements”.

The consultation received 27 responses focusing on “putting consumers first,” which the Commission has taken into account when unveiling the new transparency rules.

Commenting on the upcoming changes, Sarah Gardner, the Gambling Commission’s Executive Director for Lotteries, said: “We want to make sure that consumers have as much information as possible to make informed choices about their gambling.”

“In lotteries, we know that players are motivated by a range of things, particularly the chance to contribute towards good causes, so it is only right that they understand what that means in practice.”

The full consultation document can be accessed here.

In addition to the new rules, the Gambling Commission’s recently-unveiled three-year strategy, which is available here, has indicated that the regulator will continue to consider whether any further changes to society lotteries are needed over the coming years.

Richard Williams

Richard Williams

Partner – Joint-Head of Licensing, Gaming & Regulatory

+44 (0) 20 7307 2105

richard.w@joelsonlaw.com

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This article is for reference purposes only. It does not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking or deciding not to take any action.