What Is a Society Lottery? UK Licensing Explained
A society lottery is a lottery run for the benefit of a non-commercial society — typically a charity, community group or non-profit — and licensed under the Gambling Act 2005. Large society lotteries are regulated by the Gambling Commission; small ones register with a local authority. They do not require a free-entry route, unlike prize competitions such as Omaze.
By admin · Last updated 15 September 2026
What makes a lottery a “society lottery”?
Under the Gambling Act 2005, a society lottery is a lottery that:
- Is promoted for the benefit of a non-commercial society — a charity, community sports club, political party, or other non-profit body
- Is not run for private or commercial gain
- Is conducted within the statutory limits set by the Gambling Commission
The key distinction is the beneficiary. A commercial lottery where profits go to a business is not a society lottery — it would need a different licence category, or would be unlawful. A lottery where the proceeds go to a named charity or community organisation is a society lottery, provided it meets the licensing conditions.
People’s Postcode Lottery is an example of a large society lottery: it holds Gambling Commission account number 829 and distributes at least 30% of ticket sales to its 20 charitable Postcode Trusts. Hospice lotteries and lotteries run by charities such as the RNLI are also society lotteries, licensed either directly or through an external lottery manager (gamblingcommission.gov.uk, July 2026).
How does a society lottery differ from a prize competition?
This distinction matters for Give2Charity’s coverage:
| Feature | Society lottery | Prize competition |
|---|---|---|
| Examples | People’s Postcode Lottery, hospice lotteries, the Health Lottery | Omaze, Raffle House, Raffall |
| Gambling Commission licence | Required for large society lotteries | Not required |
| Free-entry route | Not required | Required (to avoid being classified as a lottery) |
| Determined by chance alone? | Yes | Yes, but free entry removes the lottery classification |
| Can call it a “lottery”? | Yes | No |
| Minimum sales value put toward proceeds limit | £5m per draw, £50m per year for large society lotteries (gamblingcommission.gov.uk, July 2026) | No statutory sales limit |
| % to good cause required? | At least 20% of proceeds (Gambling Act 2005) | No statutory requirement |
The practical upshot: society lotteries are more heavily regulated but have the legal right to be called lotteries. Prize competitions are lighter-touch legally but must offer a free-entry route to everyone.
How are society lotteries licensed?
There are two tiers of licensing for society lotteries in the UK (gamblingcommission.gov.uk, July 2026):
Small society lotteries
A small society lottery has proceeds of no more than £20,000 for a single lottery and no more than £250,000 in total proceeds in any calendar year. Small society lotteries register with the relevant local authority rather than the Gambling Commission directly.
Large society lotteries
Any society lottery exceeding the small society lottery thresholds must hold a Gambling Commission licence. Since legislation took effect in July 2020, a large society lottery can sell up to £5 million of tickets in a single lottery, and up to £50 million in total across a calendar year. The licence application requires the operator to demonstrate that the lottery is run for the stated societal benefit and meets the statutory conditions on prize limits and good-cause contributions.
What are the limits on society lotteries?
The Gambling Act 2005 and Gambling Commission licence conditions set limits on (gamblingcommission.gov.uk, July 2026):
- Ticket price: there is no statutory maximum price for an individual ticket, but every ticket in a given lottery must be sold at the same price.
- Maximum prize per draw: £25,000, or 10% of that draw’s proceeds, whichever is greater. A large society lottery selling its maximum £5 million of tickets in one draw could therefore pay a top prize of up to £500,000.
- Minimum % to good causes: at least 20% of proceeds must go to the purposes of the society. Many operators, including People’s Postcode Lottery, give more than this floor.
Examples of well-known society lotteries in the UK
- People’s Postcode Lottery — gives a minimum of 30% to its 20 Postcode Trusts; a large society lottery managed by Postcode Lottery Limited
- Health Lottery — a network of regional society lotteries giving a minimum of 20% to health and well-being causes (healthlottery.co.uk, July 2026)
- Hospice lotteries — individual hospices run their own licensed lotteries, large or small depending on scale, supporting their specific institution
- RNLI lottery and similar charity lotteries — a number of major UK charities run or license their own society lotteries as a fundraising channel, in addition to receiving grants from lotteries like PPL
Can a charity run both a lottery and a prize competition?
Yes. A charity could run a licensed society lottery, which requires a licence and must follow the statutory limits, and separately benefit as a charity partner in a prize competition such as Omaze, where Omaze runs the competition and donates to the charity. These are separate activities with different legal frameworks.
How do society lotteries compare on charity giving?
| Lottery | % to good causes | Notes |
|---|---|---|
| People’s Postcode Lottery | Minimum 30% (currently 31%) | Large operator, 20 charitable trusts |
| Health Lottery | Minimum 20% | Health-focused charities |
| Hospice lottery (typical) | Variable — often well above the 20% minimum | Single charity beneficiary |
| Omaze (prize competition, not a lottery) | £1m guaranteed minimum per draw (~17% historically, often lower) | Not a society lottery |
For a full comparison including prize competitions, see our how much goes to charity comparison.
For more on free postcode games that are not society lotteries, see our free postcode lottery guide.
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