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DCMS reviews proposal to remove charity lotteries sales cap

Stephanie Peacock, DCMS undersecretary for Sports and Media, has informed that the government will decide whether to remove the sales cap on British charity lotteries by “summer recess.”

The minister provided an update to the Commons during the second reading of a private members’ bill summoned by Lib-Dem MP Wendy Chamberlain.

The bill seeks to remove the current £50m cap on ticket sales to help charity lotteries and “allow unlimited charitable fundraising from licensed lottery sales.” The Lib Dems urged support for the bill, arguing that removing the sales cap would enhance funding for charitable causes at the constituency level.

As detailed by Third Sector, “The People’s Postcode Lottery has estimated that removing the annual cap could free up an additional £175m for charity over the next five years.”

DCMS has responded that while it supports initiatives for the growth of society lotteries, the government has not yet taken a stance on the bill.

Peacock stated that independent research has been commissioned to assess the impact of removing the cap and will be considered before the government announces its position. The research is expected to be completed by the end of next month.

She highlighted that while society lotteries have grown in popularity since the last legislative changes in 2020, most operate well within the existing limits. However, she acknowledged concerns that some large-scale umbrella lotteries may soon reach their cap, leading to operational challenges.

The government is keen to understand how increased sales contribute to funding good causes, as recent evidence suggests that higher ticket sales do not always lead to a proportional rise in funds allocated to charities.

The debate on Chamberlain’s bill is scheduled to resume on 11 July, when the government is expected to present its findings and formal stance on the proposed reforms.

DCMS began its hearings yesterday to assess the progress of the Gambling Review’s White Paper recommendations. During the session, peers provided feedback on the approved measures, including the £5 wagering limits on slots and the structure of the mandatory levy for research, education, and treatment (RET).
Though, White Paper proposals carry consensus across parties, the Labour government heard concerns on the implementation of new measures on UK gambling, disrupting consumers, business and stakeholders.

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