The United Kingdom Gambling Commission is now seeking views on proposed changes regarding the sales and prize limits for society lotteries. The Commission opened a consultation, which also looks at the current regulatory requirements and the fairness and transparency to consumers.
The consultation, which opened earlier this month, comes after the Government announced in July that it planned to raise the per draw limit on ticket sales from £4 million to £5 million. As a result of the proposed amendment to section 99 (3) of the Gambling Act 2005, the maximum individual prize will increase from £400,000 to £500,000. Moreover, the Government changed the annual aggregate proceeds limit from the current £10 million to £50 million.
To take effect, however, all amendments to the lottery legislation need to be reflected in the licence conditions attached to all society lottery operating licences. This is why the United Kingdom Gambling Commission (UKGC) is now consulting all members of the public, gambling operators, as well as charities and organisations concerned with gambling and social responsibility.
Our society lotteries consultation makes proposals to strengthen rules, to ensure lotteries continue to be run in a fair and open manner, and consumers have all the information they need to make informed decisions before deciding to gamble. Have your say: https://t.co/XqnL3ir2kH pic.twitter.com/1YCLItq3Qs
— Gambling Commission (@GamRegGB) December 27, 2019
If implemented, the changes would allow lottery participants to win greater prizes. At the same time, charities and society lotteries would be able to benefit from higher limits of the lottery proceeds, i.e. the ticket sales, compared to what they are allowed to sell now. The Commission is also planning to “strengthen” certain aspects of the licence conditions and codes of practice (LCCP) that are currently in place. The consultation is now available on the Commission’s official website until 12 March when it closes.
More Transparency, Information to Consumers
According to the UKGC, certain concerns regarding the transparency of society lotteries have been raised by different organisations and members of the public. This includes, first and foremost, the odds of winning a prize, which are not clearly stated. Additionally, there is not enough information about what portion of the raised money that goes to good causes and the particular causes and projects that are supported.
Lotteries are, however, primarily fundraising methods for benefitting the public rather than commercial gambling operations, the Commission explains. This is why operators should focus on transparency while making sure that the lotteries are run safely and fairly. One of the priorities of the UKGC with this consultation is to seek views on how to enable lottery consumers to make informed choices before they take part in any form of gambling.
The Commission, which regulates all gambling and betting operations in Great Britain, urge licensees to provide more accessible information to their customers. Moreover, the information should be more “meaningful”, the Commission says, so that participants are aware of their gambling choices and understand them better.
Consumers should always be able to make informed decisions whatever they buy or take part in but this is particularly important in gambling where consumer choice is almost always influenced by price. There are, however, other important things that should be considered such as the good causes people’s contributions go to.
- Author
Daniel Williams
