Running a society lottery

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How to apply

Only organisations that wish to run society lotteries – and are eligible to do so – are required to register with the National Lotteries Board (NLB).

Registration of the society is only the first step as the “scheme” (or business plan) for running a society lottery also has to be registered with the NLB and approved for implementation.

The registration process occurs in two phases and includes some external information gathering by the NLB. It is therefore important to begin the process at least two months before the date on which tickets for the society’s first lottery are scheduled to go on sale.

A full checklist of all items to be submitted during registration of the society and registration of the lottery scheme can be downloaded here.

Registering the society

The following are key documents that must be submitted to the NLB offices:

• A completed application form (SL10/00), which can be downloaded here or obtained by contacting the NLB Information Centre (Tel: 08600 65383).
• A copy of the society’s constitution, rules or memorandum and articles of association. Where the society is not a formally constituted body, the NLB will accept a copy of the minutes of a meeting recording the purposes of the society and the decision to apply for registration with the NLB.
• A list of the names and addresses of all members of the management committee.
• The prescribed registration fee of R500.

Upon registration, the society will receive a certificate of registration.

Registering the scheme

Once the society is registered with the NLB, it can proceed to register and obtain approval for the lottery scheme it intends to follow in organising lotteries.

The following should be submitted to the NLB’s offices:

• A copy of the relevant lottery scheme approved by the society. The NLB has a model lottery scheme form, SL11/00, which can be downloaded here or obtained by contacting the NLB Information Centre (Tel: 08600 65383). The form can be used exactly as is, or modified if necessary.
• A detailed budget proposal, indicating how funds raised will be applied and providing quotations for major expenditure items.
• A copy of the minutes the governing body meeting at which the decision was taken to organise a lottery in terms of the relevant scheme.
• A letter or statement from the governing body authorising the lottery promoter/manager to act in that capacity. The organiser is usually a member/employee of the society. If s/he is not, then s/he must be certified by the NLB as a lottery manager.
• Audited financial statements for the past three years. If audited statements are not available, the latest statements should be reviewed by an auditor who should give a report on whether generally accepted accounting principles have been followed and whether the accounts are compliant.
• A draft of the lottery ticket. (See requirements below. The NLB recommends delaying the printing of tickets until it has seen the draft ticket and ascertained whether it fulfills all legal requirements.)
• A personal declaration form (SL9/00) completed by the promoter/manager. This form can be downloaded here or obtained by contacting the NLB Information Centre (Tel: 08600 65383).
• The NLB may request that personal declaration forms also be completed by other individuals connected with the lottery.

Please note: The NLB also requests a police check on every person who is required to complete a personal declaration form to establish whether s/he has any relevant convictions.

Renewing society registration
Registration of a society with the NLB remains valid indefinitely, unless conditions arise for revoking registration. (See Grounds for refusing registration)

However, societies may be required to pay an annual fee to maintain their registration. The NLB presently waives this fee.

Modifying a lottery scheme

Where a society approves modifications to its lottery scheme, it is required to notify the NLB in writing and to submit a copy of the modified scheme. This communication must reach the board at least four weeks before the sale of tickets is due to begin.

Applying for exemptions

Society lotteries are governed by the Lotteries Act (No 57 of 1997) and the Regulations Relating to Society Lotteries (Gazette No 6790 of 18 April 2000). It is possible for a society to apply to the NLB for exemption from complying with aspects of the regulations relating to the ceiling on the total value of ticket sales and prizes, the total number of lotteries the society may run in a single year, information contained on tickets and in marketing materials, and lottery expenses.

Applications for exemption need to be made at least 90 days before the commencement of the lottery for which exemption is sought.

Full details on how to apply for exemptions are contained in sub-regulation 14 of the Regulations Relating to Society Lotteries.

Form SL15/00, downloadable here, may be used to estimate expenditure when applying for exemption from expenditure limits.

Also consult:
Lotteries and the law
Sections 38 - 40 and section 53 of the Lotteries Act
Regulations on the conduct of society lotteries