Running a Charity Raffle in the UK: Licences, Prizes, and Legal Requirements

A raffle is one of the oldest and most reliable fundraising tools available to community groups. Done well, it adds excitement to an event and raises meaningful sums. Done carelessly, it can fall foul of gambling legislation. A practical guide to getting it right.

Ask almost anyone who has attended a community fundraising event whether they bought a raffle ticket, and the answer is usually yes. The format is simple, universally understood, and has an almost unrivalled ability to raise additional income at an event where people are already in a generous mood. Yet the legal framework surrounding UK raffles is more detailed than many organisers realise, and the consequences of getting it wrong — even unintentionally — can be serious.

Under the Gambling Act 2005, a raffle is classified as a lottery, and running an unlicensed lottery is a criminal offence. That sounds alarming, but the Act also provides clear and accessible routes for community and charitable groups to run them legally, and most small events fall neatly into categories that require no formal licence at all.

Understanding the different types

The key distinction in UK law is between a private lottery, an incidental lottery, and a small society lottery — and the differences matter for how you run your raffle and what rules apply.

An incidental lottery is what most community events run: a raffle held at a single physical event, where tickets are sold only during the event itself, the draw takes place at the event, and all proceeds go to a non-commercial purpose (such as a charity). Crucially, the raffle must be incidental to the event — meaning the event is not held primarily to run the lottery. No licence is required for an incidental lottery, but certain conditions must be met. The total value of prizes must not exceed five hundred pounds. Prizes cannot be paid for out of raffle proceeds (though donated prizes are fine). There can be no rollover of prizes to a future draw. And the raffle must not be the main attraction: if people are attending principally to buy raffle tickets, it becomes something different and requires formal authorisation.

A small society lottery is a more formal arrangement used by registered charitable or non-commercial societies that want to run ongoing or larger raffles. To operate legally, the society must be registered with the local licensing authority. Annual registration costs a small fee, and there are annual limits on the total proceeds from lotteries. Returns must be submitted to the licensing authority after each lottery. The rules are more complex, but the allowed scale is significantly greater than for an incidental lottery.

What you must print on tickets

For most community event raffles, the ticket printing requirements are straightforward. Each ticket should include the name of the organising society or charity, the name of the event, the price of the ticket, and any conditions (such as age restrictions). If you are running a small society lottery, the ticket must also include the licence or registration number, and the date or details of the draw.

It is a common error to skip these details on printed tickets in the interest of simplicity. This is worth avoiding: it is one of the markers regulators look for, and it also gives buyers confidence that the raffle is being run properly. If you are using a ticket book from a printer or supplier, check that it meets the requirements before ordering in bulk.

Age restrictions and prize rules

Lottery tickets in the UK may not be sold to anyone under the age of sixteen. This applies to raffle tickets just as it does to other lottery products. In practice, at a community event with a mixed age group, this means whoever is selling tickets needs to exercise some judgement and should decline to sell to children who are clearly under sixteen, even if an adult is accompanying them.

The rules on prizes are less restrictive than many organisers assume. Donated prizes of any description are permitted: a hamper, a bottle of wine, a voucher for a local restaurant, a piece of artwork, or a weekend away can all appear on the prize table. Cash prizes are also allowed for incidental lotteries up to the five hundred pound limit. What is not permitted is purchasing prizes from the proceeds of ticket sales and then presenting those purchased items as if they were donated goods. If you are buying prizes, this should be noted in the event accounts.

Practical tips for running the draw on the night

The draw itself benefits from a degree of ceremony. At events like Candles on the Cobb, where the evening has an emotional and atmospheric quality, the raffle is best positioned as a highlight rather than an administrative afterthought. A good approach is to announce the draw in advance, create a brief pause in the programme, and have a respected or well-known figure in the community pull the tickets.

Make sure the ticket counterfoils are properly mixed before the draw, and that whoever is pulling tickets cannot see the numbers. Have a clear process for claiming prizes: announce the winning number clearly, repeat it, and allow a short interval for the winner to come forward. Unclaimed prizes after a reasonable time can be re-drawn or retained by the charity — announce this policy in advance to avoid confusion.

Keep a record of proceeds and prizes. Even for an incidental lottery, this is good practice and provides the information you need for charity accounts. It also helps with planning for future events: knowing what ticket price worked, how many were sold, and which prizes generated the most interest gives you a solid foundation for next time.

Online raffles: a different legal category

If you are considering selling raffle tickets online before an event — through a website, social media, or an online fundraising platform — you need to be aware that this takes the raffle outside the incidental lottery category entirely. Online ticket sales of this kind constitute a remote lottery under the Gambling Act, which requires a Gambling Commission licence. This is a significant step up in complexity and cost, and is generally not the right approach for a single local event.

Some fundraising platforms operate their own licences and can legally host prize draws or raffles on behalf of charities; if you wish to take donations online with a prize incentive, using one of these platforms is the legally correct route. Always check that any platform you use holds the appropriate authorisation before selling tickets or entering prize draw details.

Putting it all together

For the vast majority of community events, the incidental lottery rules provide a perfectly adequate framework for a well-run raffle. Keep ticket sales to the event itself, keep the prize total under five hundred pounds, use donated prizes, print the required details on tickets, do not sell to under-sixteens, draw on the night, and keep a record of the proceeds. Follow those steps and you will have a raffle that is legal, well-managed, and a genuine asset to the evening.

If your ambitions extend to a larger or ongoing lottery, the small society lottery route is accessible with a modest registration cost and some additional paperwork. Local councils are usually happy to provide guidance, and several national charities publish detailed templates and advice that can be adapted for local use.