The principal criteria against which the Sports councils assess activities is whether or not the activity meets the definition of sport contained in the Council of Europe's European Sports Charter 1993. This defines sport as:
“Sport means all forms of physical activity which, through casual or organised participation aim at expressing or improving physical fitness and mental well-being forming social relationships or obtaining results in competition at all levels”.
The other criteria include: the essential purpose of the activity, sustainability, rules and organisation and uniqueness.
The full guidelines governing the recognition of sporting activities can be found via the Sport England website:
http://www.sportengland.org/recognition_of_activities.htm