External Lottery Managers

Extract from 'Lotteries and the Law' - notes prepared by the Gambling Commission for guidance of societies and local authorities covering the Gambling Act 2005

Covers sections 7 and 8 in the document from the GC

7 External Lottery Managers

7.1 A licensed or registered society or local authority may employ an external lottery manager (ELM) to run all or part of its lottery. An ELM is defined in section 257 of the Act as someone that is a person or a company who makes arrangements for a lottery on behalf of a society or local authority but is not a member, officer or employee of the society or authority.

7.2 All ELMs must hold a lottery manager’s operating licence issued by the Commission before they can manage a licensed society or local authority lottery or a society lottery registered with a local authority. It is the responsibility of the society or local authority lottery to ensure that before employing anyone to manage all or part of their lottery they hold a valid lottery manager operating licence issued by the Commission. A list of licensed ELMs is available on the Commission's website.
Gambling Commission - Lotteries and the law

7.3 The fact that a society or local authority may employ a licensed ELM to manage all or part of its lottery does not absolve the society or local authority from its responsibility for ensuring that the lottery is conducted in such a way as to ensure that it is lawful and fully complies with all licence conditions and the codes of practice.

7.4 ELMs are also required to hold Personal Management Licences for a range of directors and senior managers, including the managing director, chief executive, finance director, compliance, marketing and IT director.

7.5 ELMs are also required to hold a remote gambling licence if they intend to sell tickets by means of remote communication.

8 External Lottery Managers and service providers

8.1 The Act specifies that a person promotes a lottery if he makes or participates in making the arrangements for a lottery. The Act states that promotion of a lottery includes:

• making arrangements for the printing of tickets
• making arrangements for the printing, publication and distribution of promotional material
• making arrangements to advertise a lottery
• inviting a person to participate in a lottery
• selling or supplying tickets; and
• offering to sell or supply tickets

Full details are set out at section 252 of the Act.

8.2 A person commits an offence under the Act if they promote a lottery, unless:

• they are an officer, employee or a member of a licensed or registered society or local authority; or
• they are a licensed ELM directed by a society or local authority to run all or part of its lottery.

8.3 A person or company may provide services in connection with a lottery to a society or local authority (for example printing tickets or advertising a lottery) without being held to have promoted a lottery.

8.4 Section 252 of the Act provides a comprehensive definition of what amounts to promoting a lottery and section 257 provides a definition of an ELM. If there is doubt whether a person or company is acting in the role of an ELM or that of a service provider the Commission will have regard to the overall management and degree of control of the lottery undertaken by the society and the other party in question. Key indicators will include:

• who decides how the lottery scheme will operate and when changes to the scheme should be made
• who controls the promotion, marketing and advertising of the lottery
• who sells the tickets
• who pays the prizes
• who appoints and manages sub contractors
• banking arrangements and the process for handling the proceeds of the lottery; and
• the contractual agreements between the society and the other party

8.5 Where the person or company who makes any of the arrangements for a society or local authority lottery, for example has control of how the lottery is promoted and managed they will be acting as a ELM and they will need to hold the relevant operating licence issued by the Commission if they are to avoid committing an offence under the Act.

Also note...

12 Ticket information

12.1 All tickets in a society lottery licensed by the Commission or registered with a local authority must state:

• the name of the society on whose behalf the lottery is being promoted;
• the price of the ticket
• the name and address of the member of the society responsible for the promotion of the lottery (in the case of a small society lottery run under local authority registration the name and address of the ELM if there is one may be given as analternative)
• the date of the draw, or the means by which the date may be determined; and
• the fact, where that is the case, that the society is licensed by the Commission

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External Lottery Managers Certificated by the Gambling Commission who are also Members of the Lotteries Council

Association Name	Telephone No.	Certificate Issue Date
Littlewoods Lotteries Limited	020 8992 8800	3 October 1994
Sisson Marketing International Limited	020 8223 7650	7 June 1996
Inter Lotto (UK) Limited	020 7960 6092	14 March 1997
Gamingking plc (Creative Lotteries Ltd)	0208 559 8111	10 July 1997
Rank Organisation	-	15 October 1998
Million-2-1	0161 236 3010	27 November 2003
IGS Lottery Management Ltd	-	27 November 2003
The Weather Lottery	0113 275 0002	October 2004
Sterling Management Centre Ltd	01229 871 380	January 2005
CFP	01628 828 283	July 2007

Click on the ELM to go to their website.