However, if your lottery exceeds a certain amount for a single draw or the total sum of combined funds of every draw exceeds the amount set by the gaming authority in one calendar year, you will need to apply for a license — the number of a single draw or combined draws in one fiscal year depends on the jurisdiction you are in.
Before you can apply for a lottery license, you should first determine what type of license you need for your lottery games in order to be fully compliant with the law in your jurisdiction.
One of the things that may determine what type of license you need is the time of selling tickets. For example, you won’t need a license if you are running an ‘incidental lottery’ where you are selling tickets at the event itself, while you will most likely need a license if you are selling tickets before the event.
There are many bylaws that will determine what sort of license you need, so you might want to seek help from a legal consultant to assist you and help you determine which type of license you need. Once you do that, you can begin with the application process.
The application process is straightforward — contact the licensing department of the relevant local authority and request the application form. After you do that, you will have to fill in the form with the necessary information and submit it alongside the fee for issuing the license. Again, the structure and the fee can vary — they depend on the gaming authority, as well as the type of license you are trying to obtain.
In order to stay fully compliant, you must meet several requirements pre-determined by gaming authorities. One of them, as we’ve mentioned before, is to make sure that the maximum prize limit doesn’t exceed the number set by the gaming authority for your license type.
However, the most important thing to note about lotteries is that they cannot be run for commercial purposes and at least 20% of your proceeds (or more) must go to fundraising.
Another important thing to consider is that the participants of your lotteries must be 16, 18, or 21, or older. As is the case with the majority of things we’ve mentioned, the age depends on the jurisdiction you are in. The same goes for the prizes offered if the awards include alcoholic drinks, etc.
Finally, you are not allowed to sell tickets in the street, but you should do it at the event. The tickets need to include the name and the price of the lottery, as well as the name and address of the organiser and the date of the lottery.