My honourable friend the Parliamentary Under-Secretary of State for Culture, Media and Sport (Gerry Sutcliffe) has made the following Written Ministerial Statement.

In recent months my department has received representations from the Lotteries Council and the Hospice Lotteries Association, seeking changes to the regulatory regime for non-commercial society lotteries established by Section 99 of the Gambling Act 2005 (“the Act”). Societies under the Act are typically national and local charities, sporting and social clubs that run lottery draws in order to raise funds for local good causes such as hospices or air ambulances. Societies which operate lotteries that raise more than £20,000 in a single draw or over £250,000 in a year must be licensed by the Gambling Commission.

The aim of the representations I have received has been to persuade the Government to increase the present limit on the maximum proceeds which are permitted to be raised by society lotteries in a single draw, from the present limit of £2 million. This would also allow a larger top prize to be offered, since the Act provides that a person buying a society lottery ticket cannot win more than 10 per cent of the overall proceeds of the draw.

These representations have been echoed in Parliament. Through signing Early Day Motion 1570 tabled by the honourable Member for Bolton North East (Mr David Crausby) in May this year, 70 honourable Members on all sides have expressed support for an increase in proceeds limits under the Act, specifically in relation to hospice lotteries.

While very few societies currently reach the present limits, some have argued that the limits hold them back, for example by preventing a number of societies coming together to promote a larger one-off annual draw.

The Government have always been willing to consider representations made on behalf of the good causes which benefit from society lotteries, as we showed when we doubled the then society lottery limits in 2002. The 2005 Act also introduced a range of deregulatory measures designed to assist society lotteries. I have considered the arguments now put by the Lotteries Council and Hospice Lotteries Council, as well as the views of honourable Members. I have also taken into account the view of the Gambling Commission, which, as the Government’s principal adviser on gambling matters, has also recommended an increase.

I have had to balance these arguments for increasing the amount which society lotteries can raise for projects with my responsibility for ensuring that the licensing objectives of the Gambling Act are observed. There is a significant risk that increasing the limit on proceeds of lottery draws, and hence the top prize available, by too great an amount could significantly change the character of a society lottery by appealing to players for whom winning such a prize would be a greater attraction than supporting the charitable cause in question. Very high prizes also bring with them an increased risk of fraud and other criminal activity.

Having weighed these considerations, I have concluded that there is a reasonable justification for a limited increase in the maximum proceeds that society lotteries may raise in a single lottery draw. I am now able to inform the House how the Government intend to proceed.

I will tomorrow publish a three-month consultation paper on a proposal to increase to £4 million the maximum proceeds for each individual society lottery draw. This will entail a top prize of up to £400,000 for each draw. There will be no increase to the annual maximum proceeds per society lottery of £10 million since no society lotteries presently reach that limit. The maximum £25,000 prize for society lotteries whose proceeds are below £250,000 will also remain unaltered.

If in the light of public consultation we decide to proceed, either with this proposal or another that suggests itself in the light of responses to the consultation, we will bring forward the necessary order. This will be for Parliament to approve by means of an affirmative resolution, requiring a debate and potentially a vote in both Houses.

This measure would benefit around 630 societies which are presently licensed by the Gambling Commission to operate society lotteries. I believe that it would provide a valuable boost to hospices, charities and other good causes which raise funds through lottery draws, whilst retaining the character of society lotteries and remaining wholly consistent with the licensing objectives of the Act.