UKGC Raises Max Society Lottery Prize by £100k as Revised Rules Actioned

  • Revisions include changes to the size of society lotteries, customer information requirements
  • Max prize for society lottery is now £500k ($649,580); max draw proceeds are £5m ($6.5m)
  • Changes also ensure that consumers make fully informed decisions on lottery participation
  • Gambling regulator has also revised remote key equipment rules for licensed operators
lottery balls inside a lottery draw machine
The UKGC has introduced a string of changes to its rules for society lotteries, which include an increase in maximum prizes and requirements for clear consumer information. [Image: Shutterstock.com]

Size and transparency in focus

The UK Gambling Commission (UKGC) has put into action a number of changes to the rules for UK-based society and local authority lotteries. The regulatory body announced the revised rules on its Twitter page:

Among the updates are changes to limits on the size of society lotteries and new requirements for all lotteries to provide “clear, transparent and easily accessible information” to customers. The commission introduced the changes from July 29 following a consultation in December 2019.  

The finer details of the changes

The UKGC has raised the maximum individual prize for a society lottery from £400,000 ($519,664) to £500,000 ($649,580). The limit on individual draw proceeds has also gone up from £4m ($5.2m) to £5m ($6.5m), while the annual aggregate proceeds limit has increased fivefold from £10m ($13m) to £50m ($65m).

annual aggregate proceeds limit has increased fivefold from £10m ($13m) to £50m ($65m)

The commission has also set out a list of subjects on which both society and local authority lotteries are required to provide consumers with clear and easily accessible information. The list includes information on the likelihood of winning a prize and how much of the lottery’s revenue is spent on expenses and prizes. Lottery participants also have a right to information on the good causes that are benefiting from the proceeds and the amount they are receiving.

Lotteries in the UK can only raise funds for good causes or local public services. Society lotteries, promoted by non-commercial societies, are considered large if proceeds exceed £20,000 ($25,975) for a single draw. In contrast, a local authority lottery must raise funds to cover anything for which the operator has the power to incur expenditure, such as local community projects or parks. The maximum prize in a single local authority lottery is £25,000 ($32,450) or 10% of the proceeds.

Discussing the changes, UKGC executive director Sarah Gardner commented: “It is critical that consumers have information available to them to help make fully informed decisions about whether to participate in lotteries.”

Additional rule revisions

The UKGC also introduced changes to remote key equipment regulations from July 29. It no longer requires licensees to apply for a variation on their license when adding or relocating equipment to a different jurisdiction. Operators will also not have to notify the commission when adding or relocating equipment in the UK.

In June this year, the UK Gambling Commission also launched a consultation concerning high-value customers, which closes on August 14. The regulator is looking to gain feedback for potential changes to its code on incentivizing and managing VIP gamblers.