Great Britain

 

Population 2019: 66.7 million
GDP 2019: 2,164 Billion EUR
GDP per capita 2019: 37,760 EUR
Taxation for Lotteries: 12 per cent for the National Lottery. External Lottery Managers have to pay Corporation Tax and a range of other taxation. Exempted from lottery duty are Society lotteries.
Charity lotteries allowed: Yes.

 

LEGISLATION

Great Britains Gambling Act came into effect in 2005; this legislation regulates almost all games of chance, including lotteries. In conjunction with this Act, the Gambling Commission was also introduced with a mandate to regulate all commercial types of gambling in Great Britain.

In addition to the Gambling Act, the National Lottery Act exists. This Act regulates the license of the National Lottery of which Camelot Group Plc is the incumbent. Currently, Camelot operates the biggest lottery in Europe with an average annual turnover of over £7 billion (8 billion EUR). The primary aim of the National Lottery Act is to raise as many funds for charities as possible.

TYPES OF LOTTERIES

The legislation in Great Britain makes a distinction between eight different types of lotteries. Three of these categories need to acquire a license to operate from the UK Gambling Commission. The other five are small (private) lotteries which may be used for fundraising or in the private sphere. These five types of lotteries are also capped at a maximum prize pool of £500 and operating costs may not exceed £100.

The first two lottery types that require a license are very similar: these are 1) external lottery manager (or ELM) 2) and small and large society lotteries. In both cases, the primary goal of both lottery types must be non-commercial and to raise funds for charities. Consequently, reserved for society are all proceeds of the lottery. Private gain or commercial undertakings are prohibited.

The third of the three types is the aforementioned National lottery. The incumbent of this license is Camelot Group Plc, who operated the lottery since inception in 1994 and who will continue to run at least till 2023. Also, unlike society lotteries, the National Lottery is not limited to the prizes it can offer or the proceeds it can make. Whereas under limits set by Parliament, society lotteries must operate within maximum prize and proceeds limits. The primary legislatorial goal of the National Lottery is to generate as many funds for charities as possible.