Government suggests slashing charity lottery fee

Indira Das-Gupta

It could soon be much easier for small charities to start their own lotteries if a proposal by the Department for Culture, Media and Sport is implemented.

The proposal, part of a major government consultation on the Gambling Commission, is to reduce the start-up fee for gambling operators from £5,000 to only £165 from next year.

This would significantly reduce the start-up costs for charities wanting to set up their own lotteries.

However, Ross Forbes, regional director of the Postcode Lottery, has warned charities to think carefully before rushing in."Running a lottery is a lot more complicated than people tend to realise," he said.

"You have to take into account marketing, administrative and ICT costs.

The proposal might open up the opportunity to more organisations, but it won't actually reduce the operating costs."

Forbes believes the drop in start-up costs will not lead to a big increase in charity-run lotteries. "I'm not convinced it will make much difference to the number of charities running their own lotteries," he said.

The deadline for responses to the consultation is 16 October.

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