Agenda item

Establishment of a Medway Community Lottery




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.


Decision number:



The Cabinet agreed the establishment of the Medway Community Lottery for the purpose of raising funds to support good causes, benefitting the residents of Medway, (Option 3).


The Cabinet approved the procurement of Gatherwell as an External Lottery Manager (ELM) to run the operational side of the lottery, for an initial one year period, with the contract then continuing on a rolling basis, subject to a three month notice being required should the Council wish to end the agreement, as set out in paragraph 4.1 of the report.


The Cabinet agreed the criteria for determining which good causes should participate in the Lottery, as defined in paragraphs 5.1 to 5.3 of the report.


The Cabinet agreed to authorise the Chief Finance Officer to apply for any necessary licences from the Gambling Commission to enable the Lottery to operate.


The Cabinet agreed to nominate the Chief Finance Officer as the personal licence holder for the Lottery and agreed to authorise him to apply for the personal licence.


The Cabinet agreed to delegate authority to the Chief Finance Officer, in consultation with the Deputy Leader and Portfolio Holder for Housing and Community Services, to:


i)       Manage and have oversight of the Lottery.

ii)      Approve appropriate policies and procedures associated with the Lottery.




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.

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