Agenda item

Background:

This report requested that the Cabinet agree the establishment of an online Medway Community Lottery to help fund discretionary support for the local voluntary and community sector and to enable such organisations to raise funds which would directly benefit local people and communities.

The report also proposed the procurement of Gatherwell as the External Lottery Manager (ELM) on the basis of their experience of running lotteries for around 80 local authorities and that their remit was to increase funding to good causes. The report noted that no quotes had been obtained from alternative lottery providers as there did not appear to be any other company that could facilitate this type of local authority lottery. As the contract could only be awarded to one economic entity, this amounted to an exceptional circumstance and therefore, the Council’s Contract Procedure Rules, as set out in the Constitution at Chapter 4, Part 7, paragraph 1.8, did not apply.

The report explained that each ticket for the lottery would cost £1 with the proceeds being distributed as follows:

• 50% directly paid to the good causes specified by individual lottery players;
• 10% being paid to the ‘central fund’ held by the Council and to be used for lottery related costs;
• 20% in prize money paid to participants;
• 20% paid to the ELM, with the 3.33% representing VAT being able to be reclaimed by the Council, to be added to the central fund.

The estimated cost of setting up the lottery was around £7,300, this would be funded from within existing budgets.

A Diversity Impact Assessment had been undertaken in relation to the establishment of the Medway Community Lottery, as set out in Appendix 1 to the report.

Reasons:

i)        To provide a self-sufficient stream of funding for local charities and other good causes, without placing a burden on the Council Tax payer.

ii)      To ensure that the Lottery is run effectively and lawfully, and without placing an unnecessary operational burden on the Executive.