National Lottery etc. Act 1993

Part IU.K. AUTHORISATION AND REGULATION OF THE NATIONAL LOTTERY

PreliminaryU.K.

1 The National Lottery.U.K.

(1)In this Act “the National Lottery” means all the lotteries that form part of the National Lottery, taken as a whole.

(2)A lottery forms part of the National Lottery if the following conditions are satisfied.

(3)The lottery must be promoted or proposed to be promoted—

(a)by the body licensed to run the National Lottery under section 5, or

(b)in pursuance of an agreement that has been made between that body and the lottery’s promoter or proposed promoter.

(4)The promotion of the lottery must be authorised by a licence that has been granted to its promoter or proposed promoter under section 6.

2 Legality of lotteries forming part of the National Lottery.U.K.

(1)A lottery that forms part of the National Lottery shall not be unlawful.

(2)Schedule 1 contains amendments consequential on subsection (1).

3 The Director General of the National Lottery.U.K.

(1)There shall be an office the holder of which shall be appointed by the Secretary of State and known as the Director General of the National Lottery.

(2)Schedule 2 makes provision in relation to the Director General.

4 Overriding duties of the Secretary of State and Director General.U.K.

(1)The Secretary of State and (subject to any directions he may be given by the Secretary of State under section 11) the Director General shall each exercise his functions under this Part in the manner he considers the most likely to secure—

(a)that the National Lottery is run, and every lottery that forms part of it is promoted, with all due propriety, and

(b)that the interests of every participant in a lottery that forms part of the National Lottery are protected.

(2)Subject to subsection (1), the Secretary of State and the Director General shall each in exercising those functions do his best to secure that the net proceeds of the National Lottery are as great as possible.

(3)In subsection (2) “the net proceeds of the National Lottery” means the sums that are paid to the Secretary of State by virtue of section 5(6).

The licensing systemU.K.

5 Licensing of a body to run the National Lottery.U.K.

(1)The Director General may by licence authorise a body corporate to run the National Lottery.

(2)Only one body may be licensed under this section at any one time.

(3)The Director General shall not grant a licence under this section unless an application in writing, containing such information as he has specified as necessary for enabling him to determine whether to grant it, has been made to him by such date as he has specified.

(4)The Director General shall not grant such a licence unless he is satisfied that the applicant is a fit and proper body to run the National Lottery.

(5)In determining whether to grant such a licence, the Director General may consider—

(a)whether any person who appears to him to be likely to manage the business or any part of the business of running the National Lottery under the licence is a fit and proper person to do so, and

(b)whether any person who appears to him to be likely to be a person for whose benefit that business would be carried on is a fit and proper person to benefit from it.

(6)A licence under this section shall include a condition requiring the licensee to pay to the Secretary of State at such times as may be determined by or under the licence such sums out of the proceeds of lotteries forming part of the National Lottery as may be so determined.

(7)A licence under this section may include a condition requiring the licensee to make such arrangements as may be determined by or under the licence for securing that, in circumstances specified in the licence, such sums as may be so determined are paid to the Director General for distribution to participants in lotteries forming part of the National Lottery.

6 Licensing of bodies to promote lotteries.U.K.

(1)The Director General may by licence authorise a body corporate to promote lotteries as part of the National Lottery.

(2)A licence under this section shall specify the lotteries, or descriptions of lottery, the promotion of which it authorises.

(3)The Director General shall not grant such a licence unless an application in writing, containing such information as he has specified as necessary for enabling him to determine whether to grant it, has been made to him.

(4)The Director General shall not grant such a licence unless he is satisfied that the applicant is a fit and proper body to promote lotteries under the licence.

(5)In determining whether to grant such a licence, the Director General may consider—

(a)whether any person who appears to him to be likely to manage the business or any part of the business of promoting lotteries under the licence is a fit and proper person to do so, and

(b)whether any person who appears to him to be likely to be a person for whose benefit that business would be carried on is a fit and proper person to benefit from it.

(6)A licence under this section may include a condition requiring the licensee to obtain the Director General’s approval of the rules of any lottery before the lottery is promoted under the licence.

7 Licences under sections 5 and 6: further provisions.U.K.

(1)A licence granted under section 5 or 6 shall be in writing and shall specify the period for which (subject to being revoked or suspended) it is to have effect.

(2)Such a licence may include such conditions (in addition to those required or authorised by section 5 or 6) as the Director General considers appropriate and in particular may include conditions requiring the licensee—

(a)to obtain the consent of the Director General before doing anything specified, or of a description specified, in the licence;

(b)to refer matters to the Director General for approval;

(c)to ensure that such requirements as the Director General may from time to time determine or approve are complied with;

(d)to provide the Director General at times specified by him with such information as he may require (including, if the information is of a description specified in the licence, information for publication by him);

(e)to allow the Director General to inspect and take copies of any documents of the licensee, including any information kept by the licensee otherwise than in writing, relating to the National Lottery or a lottery forming part of it;

(f)where such information is kept by means of a computer, to give the Director General such assistance as he may require to enable him to inspect and take copies of the information in a visible and legible form or to inspect and check the operation of any computer, and any associated apparatus or material, that is or has been in use in connection with the keeping of the information;

(g)to do such things (and, in particular, to effect such transfers of property or rights) as the Director General may require in connection with the licence ceasing to have effect and the grant of a licence to another body.

(3)In subsection (2)(e) and (f) “the Director General” includes any representative of the Director General, as well as any member of his staff, who has been authorised by him (whether generally or specially) to make such an inspection.

(4)Conditions in a licence granted under section 5 or 6 may impose requirements to be complied with by the licensee after the licence has ceased to have effect.

(5)On the granting of a licence under section 5 or 6, the licensee shall pay to the Director General a fee of such amount as the Secretary of State may by order prescribe.

(6)All fees received by the Director General by virtue of subsection (5) shall be paid into the Consolidated Fund.

8 Variation of conditions in licences.U.K.

(1)The Director General may vary any condition in a licence granted under section 5 or 6 if the licensee consents.

(2)Subject to subsection (3), the Director General may vary any condition in such a licence without the licensee’s consent if the licensee has been given a reasonable opportunity of making representations to the Director General about the variation.

(3)Subsection (2) does not apply—

(a)where the variation would result in a condition requiring the licensee to transfer any property or rights, or

(b)in the case of a licence granted under section 5, in relation to a condition that the licence provides may only be varied with the consent of the licensee.

(4)Where the Director General varies a condition in a licence under subsection (2)—

(a)he shall serve a notice on the licensee informing the licensee of the variation, and

(b)the variation shall take effect at the end of such period as may be specified in the notice.

(5)The period specified in the notice shall be a period of at least twenty-one days beginning with the date of the notice.

(6)The Director General’s power to vary a condition in a licence under subsection (1) or (2) includes power to add a condition to the licence or omit a condition from it (and references in this section to the variation of a condition are to be read accordingly).

9 Enforcement of conditions in licences.U.K.

(1)If, on an application made by the Director General, the court is satisfied—

(a)that there is a reasonable likelihood that a person will contravene a condition in a licence granted under section 5 or 6,

(b)that a person has contravened such a condition and there is a reasonable likelihood that the contravention will continue or be repeated, or

(c)that a person has contravened such a condition and there are steps that could be taken for remedying the contravention,

the court may grant an injunction restraining the contravention or, in Scotland, an interdict prohibiting the contravention or (as the case may be) make an order requiring the licensee, and any other person who appears to the court to have been party to the contravention, to take such steps as the court may direct to remedy it.

(2)In subsection (1) “the court” means the High Court or, in Scotland, the Court of Session.

(3)Any sum payable to the Secretary of State in accordance with a condition included in a licence by virtue of section 5(6) shall be recoverable by him as a debt due to him from the licensee (and the licensee’s liability to pay it shall not be affected by the licence ceasing for any reason to have effect).

10 Revocation of licences.U.K.

(1)The Director General shall revoke a licence granted under section 5 if he is satisfied that the licensee no longer is, or never was, a fit and proper body to run the National Lottery.

(2)The Director General shall revoke a licence granted under section 6 if he is satisfied that the licensee no longer is, or never was, a fit and proper body to promote lotteries under the licence.

(3)The Director General may revoke a licence granted under section 5 or 6—

(a)if it appears to him that any of the grounds for revocation set out in Part I of Schedule 3 applies, or

(b)if the licensee consents.

(4)Part II of Schedule 3 shall have effect in relation to the revocation of a licence under this section, other than a revocation with the licensee’s consent.

Control by the Secretary of StateU.K.

11 Directions to the Director General.U.K.

(1)The Director General shall in exercising his functions under sections 5 to 10 comply with any directions that he may be given by the Secretary of State.

(2)Such directions may deal in particular—

(a)with the matters that the Director General should take into account in deciding whether or not to grant licences;

(b)with the conditions that licences should contain.

12 Regulations as to the promotion of lotteries.U.K.

(1)The Secretary of State may by regulations make such provision in relation to the promotion of lotteries that form part of the National Lottery as he considers necessary or expedient.

(2)Such regulations may in particular impose requirements or restrictions as to—

(a)the minimum age of persons to whom or by whom tickets or chances may be sold;

(b)the places, circumstances or manner in which tickets or chances may be sold or persons may be invited to buy them;

(c)the information that must appear in an advertisement for a lottery;

(d)the places, circumstances or manner in which signs relating to a lottery may be displayed.

(3)In subsection (2) “tickets” includes any document providing evidence of a person’s claim to participate in the chances of a lottery.

(4)Regulations under this section may make different provision for different areas.

13 Contravention of regulations an offence.U.K.

(1)If any requirement or restriction imposed by regulations made under section 12 is contravened in relation to the promotion of a lottery that forms part of the National Lottery—

(a)the promoter of the lottery shall be guilty of an offence, except if the contravention occurred without the consent or connivance of the promoter and the promoter exercised all due diligence to prevent such a contravention,

(b)any director, manager, secretary or other similar officer of the promoter, or any person purporting to act in such a capacity, shall be guilty of an offence if he consented to or connived at the contravention or if the contravention was attributable to any neglect on his part, and

(c)any other person who was party to the contravention shall be guilty of an offence.

(2)A person guilty of an offence under this section shall be liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to imprisonment for a term not exceeding two years, to a fine or to both.

(3)Summary proceedings in Scotland for an offence under this section may be commenced within a period of six months from the date on which evidence sufficient in the opinion of the procurator fiscal to warrant proceedings came to his knowledge; but no proceedings in Scotland shall be commenced by virtue of this section more than three years after the commission of the offence.

(4)For the purposes of this section, a certificate signed by or on behalf of the procurator fiscal and stating the date on which evidence sufficient in his opinion to warrant the proceedings came to his knowledge shall be conclusive evidence of that fact; and a certificate stating that matter and purporting to be so signed shall be taken to be so signed unless the contrary is proved.

Provision of information by the Director GeneralU.K.

14 Annual report.U.K.

(1)As soon as possible after the end of every financial year, the Director General shall make a report on the exercise of his functions during that year to the Secretary of State.

(2)In subsection (1) “financial year” means—

(a)the period beginning with the date on which the first holder of the office of Director General is appointed and ending with the next 31st March, and

(b)each successive period of twelve months ending with 31st March.

(3)The Secretary of State shall lay a copy of every report received by him under this section before Parliament.

15 Power of the Secretary of State to require information.U.K.

The Director General shall provide the Secretary of State with such information relating to the National Lottery or a lottery forming part of it as the Secretary of State may direct.

Miscellaneous and supplementaryU.K.

16 False representations as to the National Lottery.U.K.

(1)If a person advertising, or offering the opportunity to participate in, a lottery, competition or game of another description gives, by whatever means, a false indication that it is a lottery forming part of, or is otherwise connected with, the National Lottery, he shall be guilty of an offence.

(2)A person guilty of an offence under this section shall be liable—

(a)on summary conviction, to a fine not exceeding the statutory maximum;

(b)on conviction on indictment, to imprisonment for a term not exceeding two years, to a fine or to both.

17 Extension of powers of Horserace Totalisator Board.U.K.

(1)The Horserace Totalisator Board may hold a licence under section 5 or 6.

(2)The Horserace Totalisator Board may hold an interest in a body corporate the only or principal object of which is the holding of a licence under section 5 or 6.

(3)In subsection (2) the reference to holding an interest in a body corporate is to holding, or being beneficially entitled to, shares in that body or to possessing voting power in that body.

18 Control of betting on the National Lottery.U.K.

(1)Schedule 1 to the M2Betting, Gaming and Lotteries Act 1963 (bookmaker’s permits, betting agency permits and betting office licences) shall be amended in accordance with subsections (2) to (4).

(2)In paragraph 15(e) (application for grant or renewal of bookmaker’s or betting agency permit must be refused if a similar application has been refused under paragraph 16(1)(a) or 17(b) within preceding twelve months) after “16(1)(a)” and after “17(b)” there shall be inserted “ or 18A ”.

(3)After paragraph 18 there shall be inserted—

“18A(1)In the case of an application for the renewal of a bookmaker’s permit or a betting agency permit, the appropriate authority shall refuse the application if they are satisfied that the applicant or an employee of his has, since the permit was granted, received or negotiated a bet on the outcome of any lottery forming part of the National Lottery for the purposes of Part I of the National Lottery etc. Act 1993.

(2)For the purposes of sub-paragraph (1) above, the appropriate authority shall disregard any bet which ought properly to have been raised by way of objection on a previous occasion when the permit was renewed.”

(4)In paragraph 27(4) (grounds on which bookmaker’s permit may be cancelled) after paragraph (b) there shall be inserted— “; or

(c)the authority are satisfied that the holder of the permit or an employee of his has, since the permit was granted, received or negotiated a bet on the outcome of any lottery forming part of the National Lottery for the purposes of Part I of the National Lottery etc. Act 1993.”

(5)The M3Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 shall be amended in accordance with subsections (6) to (8).

(6)In Article 8(4) (grounds on which an application for a bookmaker’s licence must be refused) in sub-paragraph (d) after “(e)” there shall be inserted “ or in Article 17(2)(d) ”.

(7)In Article 17 (renewal of bookmaker’s licence by a court)—

(a)after paragraph (2)(c) there shall be inserted— “; and

(d)that neither the applicant nor any employee of his has, since the licence was granted, received or negotiated a bet on the outcome of any lottery forming part of the National Lottery for the purposes of Part I of the National Lottery etc. Act 1993.”, and

(b)after paragraph (2) there shall be inserted—

“(2A)For the purposes of paragraph (2)(d), the court shall disregard any bet which ought properly to have been raised by way of objection on a previous occasion when the licence was renewed.”

(8)In Article 27(1) (grounds on which bookmaker’s licence may be revoked) after paragraph (e) there shall be inserted— “; or

(f)that the licensed bookmaker or an employee of his has, since the licence was granted, received or negotiated a bet on the outcome of any lottery forming part of the National Lottery for the purposes of Part I of the National Lottery etc. Act 1993.”

19 Restriction of enactments relating to the rehabilitation of offenders.U.K.

(1)Neither section 4(1) of the M4Rehabilitation of Offenders Act 1974 nor Article 5(1) of the M5Rehabilitation of Offenders (Northern Ireland) Order 1978 (exclusion of evidence and questions relating to an individual’s previous convictions) shall apply in relation to any proceedings—

(a)before the Director General in respect of the grant or revocation of a licence, or

(b)by way of appeal to the Secretary of State against the revocation of a licence by the Director General.

(2)A conviction shall not be regarded as spent for the purposes of section 4(2) of that Act or Article 5(2) of that Order (restrictions in respect of such questions put otherwise than in proceedings) if the question is put by the Director General and the following conditions are satisfied.

(3)The question must be put for the purpose of determining whether to grant or revoke a licence.

(4)The question must relate to an individual—

(a)who manages the business or any part of the business carried on under the licence (or who is likely to do so if the licence is granted), or

(b)for whose benefit that business is carried on (or is likely to be carried on if the licence is granted).

(5)When the question is asked, the person questioned must be informed that by virtue of this section all the individual’s previous convictions are to be disclosed.

20 Interpretation of Part I.U.K.

In this Part—

• “contravention”, in relation to a condition or requirement, includes a failure to comply with that condition or requirement (and “contravened” is to be read accordingly);

• “the Director General” means the Director General of the National Lottery;

• “participant”, in relation to a lottery, means a person who has bought a ticket or chance in the lottery;

• “promote” includes conduct (and “promotion” is to be read accordingly);

and any reference to a lottery forming part of the National Lottery is to be read in accordance with section 1.

Part IIU.K. DISTRIBUTION OF THE NET PROCEEDS OF THE NATIONAL LOTTERY

The distribution systemU.K.

21 The National Lottery Distribution Fund.U.K.

(1)There shall be a fund maintained under the control and management of the Secretary of State and known as the National Lottery Distribution Fund.

(2)The Secretary of State shall pay into the Distribution Fund all the sums that are paid to him by virtue of section 5(6).

22 Apportionment of money in Distribution Fund.U.K.

(1)Every sum that is paid into the Distribution Fund under section 21(2) shall be apportioned as follows.

(2)So much of the sum as the Secretary of State considers appropriate shall be allocated for making payments under section 31 and held in the Distribution Fund for that purpose.

(3)Of the balance—

(a)20 per cent. shall be allocated for expenditure on or connected with the arts,

(b)20 per cent. shall be allocated for expenditure on or connected with sport,

(c)20 per cent. shall be allocated for expenditure on or connected with the national heritage,

(d)20 per cent. shall be allocated for charitable expenditure, and

(e)20 per cent. shall be allocated for expenditure on projects to mark the year 2000 and the beginning of the third millennium.

23 The distributing bodies.U.K.

(1)So much of any sum paid into the Distribution Fund as is allocated for expenditure on or connected with the arts shall be held in the Distribution Fund—

[F4(a)as to 83.3 per cent., for distribution by the Arts Council of England,

(b)as to 8.9 per cent., for distribution by the Scottish Arts Council,

(c)as to 5 per cent., for distribution by the Arts Council of Wales, and

(d)as to 2.8 per cent., for distribution by the Arts Council of Northern Ireland 1994.]

(2)So much of any sum paid into the Distribution Fund as is allocated for expenditure on or connected with sport shall be held in the Distribution Fund—

(a)as to 83.3 per cent., for distribution by the Sports Council,

(b)as to 8.9 per cent., for distribution by the Scottish Sports Council,

(c)as to 5 per cent., for distribution by the Sports Council for Wales, and

(d)as to 2.8 per cent., for distribution by the Sports Council for Northern Ireland.

(3)So much of any sum paid into the Distribution Fund as is allocated for expenditure on or connected with the national heritage shall be held in the Distribution Fund for distribution by the Trustees of the National Heritage Memorial Fund.

(4)So much of any sum paid into the Distribution Fund as is allocated for charitable expenditure shall be held in the Distribution Fund for distribution by the National Lottery Charities Board (established under section 37).

(5)So much of any sum paid into the Distribution Fund as is allocated for expenditure on projects to mark the year 2000 and the beginning of the third millennium shall be held in the Distribution Fund for distribution by the Millennium Commission (established under section 40).

24 Payments from Distribution Fund to distributing bodies.U.K.

At such times as the Secretary of State thinks appropriate, payments of such amounts as he thinks appropriate may be made to a body specified in section 23 out of so much of any money in the Distribution Fund as is held for distribution by that body.

25 Application of money by distributing bodies.U.K.

(1)Subject to the provisions of this Part, a body shall distribute any money paid to it under section 24 for meeting expenditure of the relevant description mentioned in section 22(3).

(2)A body shall not under subsection (1) distribute money for any purpose or in any manner if it does not have power to distribute money for that purpose or in that manner apart from subsection (1).

(3)A body may defray out of any money paid to it under section 24 any expenses incurred by the body in consequence of this Act.

(4)The Trustees of the National Heritage Memorial Fund may apply any money paid to them under section 24 for any purpose for which they have power to apply money under section 4 of the M6National Heritage Act 1980 (acquisition, maintenance or preservation of property in respect of which they may make grants or loans under section 3(1) of that Act).

Control by the Secretary of StateU.K.

26 Directions to distributing bodies.U.K.

(1)A body shall comply with any directions given to it by the Secretary of State as to the matters to be taken into account in determining the persons to whom, the purposes for which and the conditions subject to which the body distributes any money under section 25(1).

(2)The Trustees of the National Heritage Memorial Fund shall comply with any directions given to them by the Secretary of State as to the matters to be taken into account in determining the purposes for which and the conditions subject to which the Trustees apply any money under section 25(4).

(3)A body shall comply with any directions that the Secretary of State considers it appropriate to give the body for securing the proper management and control of money paid to the body under section 24.

(4)Directions under subsection (3) may in particular require a body—

(a)to obtain the consent of the Secretary of State before doing anything specified, or of a description specified, in the directions;

(b)to provide the Secretary of State at times specified by him with such information as he may require.

(5)The Secretary of State shall consult a body before giving any directions to it under this section.

27 Power to prohibit distribution in certain cases.U.K.

(1)Where subsection (2) applies, the Secretary of State may by order prohibit a body from distributing money under section 25(1) to a person specified in the order.

(2)This subsection applies if at the time the order is made—

(a)the person specified is a company of which the body, or a wholly-owned subsidiary of the body, is a member, or

(b)the Secretary of State considers that the body is able (whether directly or indirectly) to control or materially to influence the policy of the person specified in carrying on any undertaking or performing any functions.

(3)In subsection (2)—

(a)“company” means a company formed and registered under the M7Companies Act 1985 or the M8Companies (Northern Ireland) Order 1986 or a company to which the provisions of that Act or Order apply as they apply to a company so formed and registered, and

(b)“wholly-owned subsidiary” has the meaning given by section 736 of that Act or Article 4 of that Order.

(4)Where subsection (5) applies, the Secretary of State may give directions to a body—

(a)prohibiting it from distributing money under section 25(1) to a person in Northern Ireland specified in the directions, or

(b)requiring it to secure that any money distributed by it under section 25(1) to such a person is not applied for a purpose specified in the directions.

(5)This subsection applies if at the time the directions are given the Secretary of State considers that—

(a)a proscribed organisation for the purposes of the M9Northern Ireland (Emergency Provisions) Act 1991, or

(b)any other organisation that appears to him to be concerned in terrorism in Northern Ireland or in promoting or encouraging it,

might directly or indirectly derive benefit from the distribution of money to the person specified.

(6)In subsection (5) “benefit” includes benefit of a non-financial nature and, in particular, an enhancement of reputation.

(7)A body may not disclose to any other person either the identity of any person specified in directions given to it under subsection (4) or any information that might lead to the identification of such a person.

(8)A body shall provide the Secretary of State with such information as he may require for the purpose of exercising his powers under this section in relation to the body.

28 Power to amend section 22.U.K.

(1)The Secretary of State may by order amend section 22(3) so as to substitute different percentages for any of the percentages for the time being specified there.

(2)Any amendment made under this section shall be such that—

(a)no percentage lower than 5 per cent. is specified in section 22(3), and

(b)the percentages specified in section 22(3) amount in total to 100 per cent.

(3)Without prejudice to the generality of section 60(5), an order under this section may provide for sums that apart from the order would be held in the Distribution Fund for distribution by a particular body to be held in the Distribution Fund for distribution by another body specified in section 23.

29 Power to amend section 23.U.K.

(1)The Secretary of State may by order amend subsection (1), (2), (3) or (4) of section 23 so as—

(a)to substitute a different body for any body for the time being specified in that subsection;

(b)to add another body to the bodies or body for the time being specified in it;

(c)to omit any body for the time being specified in it;

(d)to substitute different percentages for any percentages for the time being specified in it.

(2)Any amendment made under subsection (1) shall be such that the amended subsection—

(a)provides for the whole of the sum mentioned in that subsection to be held for distribution by the one body specified in that subsection, or

(b)provides for the whole of that sum to be held for distribution by the two or more bodies specified in that subsection and specifies, in relation to each of those bodies, what percentage of that sum is to be held for distribution by that body.

(3)The Secretary of State may by order provide that subsection (1), (2), (3) or (4) of section 23 shall, pending the making of an order amending that subsection under subsection (1),—

(a)cease to have effect, or

(b)have effect as if any of the bodies for the time being specified in it were omitted.

(4)Without prejudice to the generality of section 60(5)—

(a)an order made under subsection (1) may provide for sums that apart from the order would be held in the Distribution Fund for distribution by a particular body to be held in the Distribution Fund for distribution by another body (being a body that on the coming into force of the order is specified in the subsection amended by the order);

(b)an order made under subsection (3) may provide for sums that apart from the order would be held in the Distribution Fund for distribution by a particular body to be held in the Distribution Fund in the name of the Secretary of State, pending being held for distribution by another body in accordance with the order to be made under subsection (1).

(5)Without prejudice to the generality of subsection (1), the Secretary of State may exercise his powers under that subsection so as to remove from section 23 any body that has contravened or failed to comply with a requirement or prohibition imposed on it by or under section 26 or 27.

Winding up of fund allocated under section 22(3)(e)U.K.

30 Winding up of fund allocated under section 22(3)(e).U.K.

(1)In relation to any sum that is paid into the Distribution Fund under section 21(2) after 31st December 2000, section 22(3) shall have effect—

(a)with the omission of paragraph (e), and

(b)subject to any order under section 28 that takes effect after 31st December 2000, with the substitution of higher percentages for the percentages that on that date are specified in paragraphs (a) to (d).

(2)The higher percentages shall bear the same proportion to one another as the percentages for which they are substituted and shall amount in total to 100 per cent.

(3)The Secretary of State may by order substitute a later date for the date that is for the time being specified in subsection (1).

Distribution Fund: further provisionsU.K.

31 Payments from Distribution Fund in respect of expenses.U.K.

(1)At such times as the Secretary of State with the approval of the Treasury determines to be appropriate, payments shall be made into the Consolidated Fund out of so much of any money in the Distribution Fund as is held under section 22(2).

(2)The payments shall be of such amounts as the Secretary of State with the approval of the Treasury determines to be appropriate for—

(a)meeting payments made or to be made under paragraph 5 of Schedule 2,

(b)defraying expenses incurred or to be incurred by the Secretary of State in exercising his functions under this Act, and

(c)defraying expenses incurred or to be incurred by the National Debt Commissioners in making investments under section 32.

(3)In determining what amounts are appropriate for meeting the payments referred to in subsection (2)(a), the Secretary of State shall take into account sums paid or to be paid into the Consolidated Fund under section 7(6).

32 Investment of Distribution Fund.U.K.

(1)So much of any money in the Distribution Fund as is neither held under section 22(2) nor immediately required for making payments under section 24 may be paid over to the National Debt Commissioners and invested by them in accordance with such directions as may be given by the Treasury.

(2)The proceeds of any investment made under subsection (1) or this subsection may be re-invested by the National Debt Commissioners in accordance with such directions as may be given by the Treasury.

(3)The proceeds of any investment made under subsection (1) or (2) shall, if they are not re-invested under subsection (2), be paid into the Distribution Fund and—

(a)to the extent that the proceeds are attributable to the investment of sums paid under subsection (1) out of money held for distribution by a body specified in section 23, held in the Distribution Fund for distribution by that body (subject to any order under section 28 or 29);

(b)to the extent that the proceeds are attributable to the investment of sums paid under subsection (1) out of money held in the name of the Secretary of State by virtue of paragraph (b) of section 29(4), held in the Distribution Fund in his name as mentioned in that paragraph (or where the order under section 29(1) mentioned in that paragraph has been made, held in accordance with that order).

(4)In this section “proceeds”, in relation to an investment, means any interest or dividends received in respect of the investment and any sums received on the realisation of the investment.

(5)For the purposes of subsection (3), the extent to which any proceeds are attributable to the investment of sums paid under subsection (1) out of money held for distribution by a particular body or held in the name of the Secretary of State shall be determined by, or in accordance with principles determined by, the Secretary of State.

33 Accounts of the Secretary of State and National Debt Commissioners.U.K.

(1)The Secretary of State shall prepare accounts in respect of the Distribution Fund in such form, and in such manner and at such times, as the Treasury may direct.

(2)The National Debt Commissioners shall prepare accounts in respect of any investments under section 32 in such form, and in such manner and at such times, as the Treasury may direct.

(3)Each account prepared under subsection (1) or (2) shall be sent to the Comptroller and Auditor General who shall examine, certify and report on it and shall lay copies of it and of his report before Parliament.

Reports and accounts of distributing bodiesU.K.

34 Annual reports by distributing bodies other than Millennium Commission.U.K.

(1)As soon as possible after the end of every financial year, each body that in that year was paid any money under section 24 or distributed or applied any money under section 25 shall make a report to the Secretary of State on the exercise during that year of its functions under this Act.

(2)The report shall set out any directions given to the body under section 26 that had effect during the financial year to which the report relates.

(3)The Secretary of State shall lay a copy of every report received by him under this section before Parliament.

(4)This section does not apply to the Millennium Commission.

35 Accounts of distributing bodies other than Charities Board and Millennium Commission.U.K.

(1)A body shall keep proper accounts in respect of any money paid to it under section 24 and proper records in relation to the accounts.

(2)A body shall prepare a statement of accounts in respect of each financial year in which it was paid any money under section 24 or distributed or applied any money under section 25.

(3)The statement shall comply with any directions that may be given by the Secretary of State as to the information to be contained in such a statement, the manner in which such information is to be presented or the methods and principles according to which such a statement is to be prepared.

(4)Copies of the statement shall be sent to the Secretary of State and the Comptroller and Auditor General within such period after the end of the financial year to which the statement relates as the Secretary of State may direct.

(5)The Comptroller and Auditor General shall examine, certify and report on the statement and shall lay copies of the statement and of his report before Parliament.

(6)The Secretary of State shall not give a direction under this section without the Treasury’s approval.

(7)This section does not apply to the National Lottery Charities Board or to the Millennium Commission.

The Trustees of the National Heritage Memorial FundU.K.

36 Amendment of the National Heritage Act 1980.U.K.

The M10National Heritage Act 1980 shall have effect with the amendments set out in Schedule 4.

The National Lottery Charities BoardU.K.

37 The National Lottery Charities Board.U.K.

(1)There shall be a body corporate known as the National Lottery Charities Board.

(2)Schedule 5 makes provision in relation to the Charities Board.

38 Grants to charities etc.U.K.

(1)The Charities Board may make out of any money they receive grants for meeting the expenditure of charities or of institutions such as are mentioned in paragraph (b) of the definition of “charitable expenditure” in section 44(1).

(2)In making a grant under this section, the Charities Board may impose such conditions as they think fit, including conditions requiring the amount of a grant to be repaid forthwith on breach of any condition.

39 Accounts.U.K.

(1)The Charities Board shall—

(a)keep proper accounts and proper records in relation to the accounts, and

(b)prepare a statement of accounts in respect of each financial year.

(2)The statement shall comply with any directions that may be given by the Secretary of State as to the information to be contained in such a statement, the manner in which such information is to be presented or the methods and principles according to which such a statement is to be prepared.

(3)Copies of the statement shall be sent to the Secretary of State and the Comptroller and Auditor General within such period after the end of the financial year to which the statement relates as the Secretary of State may direct.

(4)The Comptroller and Auditor General shall examine, certify and report on the statement and shall lay copies of the statement and of his report before Parliament.

(5)The Secretary of State shall not give a direction under this section without the Treasury’s approval.

The Millennium CommissionU.K.

40 The Millennium Commission.U.K.

(1)There shall be a body corporate known as the Millennium Commission.

(2)Schedule 6 makes provision in relation to the Millennium Commission.

41 Grants in respect of projects.U.K.

(1)The Millennium Commission may make out of any money they receive grants to fund or assist in the funding of such projects as the Millennium Commission consider appropriate to mark the year 2000 and the beginning of the third millennium [F18(including grants for establishing or contributing to endowments in connection with such projects)].

(2)In making a grant under this section, the Millennium Commission may impose such conditions as they think fit, including conditions requiring the amount of a grant to be repaid forthwith on breach of any condition.

(3)The Millennium Commission may do anything that they consider desirable for enabling them to determine the projects in respect of which grants under this section are to be made.

42 Annual report.U.K.

(1)As soon as possible after the end of every financial year, the Millennium Commission shall lay before Parliament a report on the exercise of their functions during that year.

(2)The report shall set out any directions given to the Millennium Commission under section 26 that had effect during the financial year to which the report relates.

43 Accounts.U.K.

(1)The Millennium Commission shall—

(a)keep proper accounts and proper records in relation to the accounts, and

(b)prepare a statement of accounts in respect of each financial year.

(2)The statement shall comply with any directions that may be given by the Secretary of State as to the information to be contained in such a statement, the manner in which such information is to be presented or the methods and principles according to which such a statement is to be prepared.

(3)Copies of the statement shall be sent to the Comptroller and Auditor General within such period after the end of the financial year to which the statement relates as the Secretary of State may direct.

(4)The Comptroller and Auditor General shall examine, certify and report on the statement and shall lay copies of the statement and of his report before Parliament.

(5)The Secretary of State shall not give a direction under this section without the Treasury’s approval.

SupplementaryU.K.

44 Interpretation of Part II.U.K.

(1)In this Part—

• “charitable expenditure” means expenditure—

  (a)

  by charities, or

  (b)

  by institutions, other than charities, that are established for charitable purposes (whether or not those purposes are charitable within the meaning of any rule of law), benevolent purposes or philanthropic purposes;

• “the Charities Board” means the National Lottery Charities Board;

• “the Distribution Fund” means the National Lottery Distribution Fund;

• “expenditure on or connected with the national heritage” means expenditure for the purpose—

  (a)

  of acquiring, maintaining or preserving (or assisting in the acquisition, maintenance or preservation of) any property of a description mentioned in section 3(1)(a) to (e) of the M11National Heritage Act 1980, or

  (b)

  of carrying out (or assisting in the carrying out of) anything mentioned in section 3(2B)(a) to (g) of that Act (as inserted by paragraph 3 of Schedule 4);

• “financial year”, in relation to a body, means—

  (a)

  the period beginning with the date on which the body is established and ending with the next 31st March, and

  (b)

  each successive period of twelve months ending with 31st March.

(2)For the purposes of the definition of “expenditure on or connected with the national heritage” in subsection (1), any reference in section 3 of the National Heritage Act 1980 to the opinion of the Trustees shall be read, in relation to any body other than the Trustees of the National Heritage Memorial Fund that is for the time being specified in section 23(3), as a reference to the opinion of that body.

Part IIIU.K. MISCELLANEOUS AMENDMENTS RELATING TO LOTTERIES

PreliminaryU.K.

45 Interpretation of Part III.U.K.

In this Part “the 1976 Act” means the M12Lotteries and Amusements Act 1976.

Importation and exportation restrictionsU.K.

46 Importation and exportation restrictions.U.K.

(1)In section 1 of the M13Revenue Act 1898 (prohibition on the importation of advertisements and notices relating to lotteries) as it applies in the United Kingdom, after “importation” there shall be inserted “ from a place outside the British Islands and the member States ”.

(2)That section so far as it applies in the British Islands outside the United Kingdom shall cease to have effect.

(3)In section 2(1) of the 1976 Act (general lottery offences)—

(a)in paragraph (d) (bringing or sending lottery tickets or advertisements into Great Britain) after “Great Britain” there shall be inserted “ from a place outside the British Islands and the member States ”, and

(b)in paragraph (e) (sending lottery proceeds etc. out of Great Britain) after “Great Britain” there shall be inserted “ to a place outside the British Islands and the member States ”.

(4)In Article 132(1) of the M14Betting, Gaming, Lotteries and Amusements (Northern Ireland) Order 1985 (general lottery offences)—

(a)in paragraph (d) (bringing or sending lottery tickets or advertisements into Northern Ireland) after “Northern Ireland” there shall be inserted “ from a place outside the British Islands and the member States ”, and

(b)in paragraph (f) (sending lottery proceeds etc. out of Northern Ireland) after “Northern Ireland” there shall be inserted “ to a place outside the British Islands and the member States ”.

Private lotteriesE+W+S

47 Private lotteries.E+W+S

For section 4(1) of the 1976 Act (private lotteries) there shall be substituted—

“(1)In this Act “private lottery” means a lottery in Great Britain which is promoted—

(a)for members of one society established and conducted for purposes not connected with gaming, betting or lotteries;

(b)for persons all of whom work on the same premises; or

(c)for persons all of whom reside on the same premises,

and which satisfies the conditions in subsections (1A) and (1B) below.

(1A)The lottery must be promoted by persons each of whom—

(a)is one of the persons for whom the lottery is promoted; and

(b)in the case of a lottery promoted for the members of a society, is authorised in writing by the governing body of the society to promote the lottery.

(1B)The sale of tickets or chances in the lottery must be confined—

(a)to the persons for whom the lottery is promoted; and

(b)in the case of a lottery promoted for the members of a society, to any other persons on the society’s premises.”

Societies’ lotteries and local lotteriesE+W+S

48 Registration of societies.E+W+S

(1)Section 5 of the 1976 Act (societies’ lotteries) shall be amended as follows.

(2)In subsection (3) (conditions that must be satisfied for a lottery not to be unlawful) in paragraph (b) (society to be registered under Schedule 1 to that Act) for “Schedule 1 to this Act” there shall be substituted “ the appropriate Schedule ”.

(3)After subsection (3) there shall be inserted—

“(3A)The appropriate Schedule for the purposes of subsection (3)(b) above—

(a)is Schedule 1 to this Act if none of subsections (3B) to (3D) below applies to the lottery;

(b)is Schedule 1A to this Act if any of those subsections applies to the lottery.

(3B)This subsection applies to a lottery if the total value of the tickets or chances sold or to be sold in the lottery is more than £20,000.

(3C)This subsection applies to a lottery if the total value of—

(a)the tickets or chances sold or to be sold in the lottery, and

(b)the tickets or chances sold or to be sold in all earlier lotteries held by the same society in the same year,

is more than £250,000.

(3D)This subsection applies to a lottery if subsection (3B) or (3C) above applied to any earlier lottery held by the same society in the same year or any of the three preceding years.

(3E)For the purposes of this section—

(a)a lottery is earlier than another lottery if any tickets or chances in it are sold, distributed or offered for sale before any tickets or chances in the other lottery are sold, distributed or offered for sale, and

(b)a lottery is held in the year in which the date of the lottery falls.

(3F)In this section “year” means a period of twelve months beginning with 1st January.”

(4)In subsection (5) (which introduces Schedule 1 to the 1976 Act) for “Schedule 1” there shall be substituted “ Schedules 1 and 1A ”.

(5)Schedule 1 to the 1976 Act (registration of societies) shall have effect with the amendments set out in Part I of Schedule 7 to this Act.

(6)After Schedule 1 to the 1976 Act there shall be inserted the Schedule set out in Part II of Schedule 7 to this Act.

49 Registration of lottery schemes.E+W+S

(1)In section 5(3) of the 1976 Act (conditions that must be satisfied for a society’s lottery not to be unlawful) paragraph (d) (lottery scheme to be registered with the Gaming Board if the total value of tickets or chances to be sold in the lottery is more than £10,000) and the word “and” immediately preceding it shall be omitted.

(2)At the end of section 6 of the 1976 Act (local lotteries) there shall be added—

“(4)Schedule 2 to this Act shall have effect.”

(3)Section 9 of the 1976 Act (schemes for societies’ lotteries and local lotteries) shall cease to have effect.

(4)Schedule 2 to the 1976 Act (registration of schemes) shall have effect with the amendments set out in Schedule 8 to this Act.

51 Frequency of lotteries.E+W+S

For section 10 of the 1976 Act there shall be substituted—

“10 Frequency of lotteries.

(1)The Secretary of State may by order prescribe—

(a)the maximum number of lotteries that may be promoted under section 5 or 6 above in any period of twelve months on behalf of the same society or by the same local authority; and

(b)the minimum number of days that must elapse between the dates of any two lotteries promoted under section 5 or 6 above on behalf of the same society or by the same local authority.

(2)An order under subsection (1) above may make different provision for different cases or circumstances.”

52 Rules for lotteries.E+W+S

(1)Section 11 of the 1976 Act (rules for authorised lotteries) shall be amended as follows.

(2)In subsection (1)(b) (information to be given in the case of a society’s lottery on every ticket and every notice or advertisement of the lottery) for the words from “and every notice” to “published” there shall be substituted “ distributed or sold ”.

(3)In subsection (3) (the price of every ticket or chance in a lottery to be the same and to be stated on any ticket) after “any ticket” there shall be inserted “ distributed or sold ”.

(4)After subsection (4) there shall be inserted—

“(4A)No payment other than the price of a ticket or chance shall be required of a person as a condition of his admission to participate in a society’s lottery or a local lottery.”

(5)For subsections (5) to (10) there shall be substituted—

“(5)No prize in a society’s lottery or a local lottery shall exceed in amount or value £25,000 or 10 per cent. of the total value of the tickets or chances sold in the lottery (whichever is greater).

(6)The total value of the tickets or chances sold in any one such lottery shall not exceed £1,000,000.

(7)The total value of the tickets or chances sold in all such lotteries held in any one year and promoted on behalf of the same society or by the same local authority shall not exceed £5,000,000.

(8)For the purposes of subsection (7) above, a lottery is held in the year in which the date of the lottery falls.

(9)In this section “year” means a period of twelve months beginning with 1st January; but if subsection (7) above (as substituted by section 52 of the National Lottery etc. Act 1993) comes into force on a date other than 1st January—

(a)the period beginning with that date and ending with the next 31st December shall be taken to be the first year for the purposes of that subsection, and

(b)in relation to that period, the reference to £5,000,000 in that subsection shall be read as a reference to a proportionately smaller amount.”

(6)In subsection (11) (not more than half of a lottery’s proceeds may be appropriated for the provision of prizes) for “one half” there shall be substituted “ 50 per cent. ”.

(7)In subsection (13) (which specifies, in relation to the amount of a lottery’s proceeds that may be appropriated on account of expenses, limits that differ according to whether or not the proceeds exceed £10,000)—

(a)for “£10,000”, in both places, there shall be substituted “ £20,000 ”, and

(b)for “25 per cent.”, in both places, there shall be substituted “ 30 per cent. ”

(8)After subsection (13) there shall be added—

“(14)For the purposes of subsection (12) above, the amount of any expenses that are met—

(a)by the society on whose behalf, or the local authority by whom, the lottery is promoted, or

(b)by any beneficiary of the lottery,

shall be treated as having been appropriated on account of expenses from the proceeds of the lottery.

(15)In subsection (14) above “beneficiary of the lottery” means a person (other than the society on whose behalf, or the local authority by whom, the lottery is promoted) to whom or for whose benefit any of the proceeds of the lottery, other than amounts appropriated in respect of expenses or prizes, are lawfully paid or applied.

(16)The amount of the proceeds of a society’s lottery or a local lottery appropriated for the provision of prizes and the amount of those proceeds appropriated on account of expenses (exclusive of prizes) shall not exceed in aggregate a prescribed percentage of the whole proceeds of the lottery.”

53 Offences.E+W+S

(1)Section 13 of the 1976 Act (offences relating to societies’ lotteries and local lotteries) shall be amended as follows.

(2)In subsection (1) (contravention of requirement of Act or of regulations made under it) for “or of any regulations made under it” there shall be substituted “ , of any regulations made under it or of any order made under section 10 above ”.

(3)After subsection (2) there shall be inserted—

“(2A)It shall be a defence for a person charged with an offence in respect of a contravention of section 11(5) above to prove—

(a)that the total value of the tickets or chances sold in the lottery fell short of the sum reasonably estimated; and

(b)that the amount or value of the prize in question would not have contravened section 11(5) above if the total value of the tickets or chances sold had amounted to the sum reasonably estimated; and

(c)that, if the amount or value of the prize had been any less, an unconditional undertaking as to prizes given in connection with the sale of tickets or chances would have been broken.”

(4)In subsection (4) (defence in respect of contravention of section 10 etc.) after “contravention of” there shall be inserted “ an order made under ”.

54 Powers of the Secretary of State to vary monetary limits and to prescribe or vary fees.E+W+S

(1)Section 18 of the 1976 Act (powers of the Secretary of State as to monetary limits, fees etc.) shall be amended as follows.

(2)For subsection (1)(a) there shall be substituted—

“(a)vary the sum specified in section 5(3B) or (3C) above;”.

(3)For subsection (1)(b) there shall be substituted—

“(b)vary any sum or percentage specified in section 11 above or prescribe the percentage referred to in subsection (16) of that section;”.

(4)In subsection (1)(e) for “under paragraph 7 of Schedule 2 below” there shall be substituted “ , or provide that no fees are to be payable, under paragraph 2, 6 or 10 of Schedule 1A below or paragraph 6A or 7 of Schedule 2 below ”.

(5)In subsection (1) the word “and” at the end of paragraph (e) shall be omitted and after that paragraph there shall be inserted—

“(ee)vary the sum specified in paragraph 13(1) of Schedule 1A below or paragraph 6D(1) of Schedule 2 below;

(eee)vary the fee payable under paragraph 1 of Schedule 2A below; and”.

(6)In subsection (2) for “subsection (1)(e) above” there shall be substituted “ subsection (1) above may make different provision for different cases or circumstances and an order made by virtue of paragraph (e) of that subsection ”.

55 Interpretation of the 1976 Act.E+W+S

In section 23(1) of the 1976 Act (interpretation) the following definitions shall be inserted in the appropriate places in alphabetical order—

• ““employee” and “employment” have the meanings given by section 153(1) of the M16Employment Protection (Consolidation) Act 1978”;

““registration authority” has the meaning given by paragraph 1 of Schedule 1 below”.

Part VU.K. SUPPLEMENTARY

60 Orders and regulations.U.K.

(1)Any power to make an order or regulations under this Act shall be exercisable by statutory instrument.

(2)An order shall not be made under section 28 or 30 unless a draft of the statutory instrument containing it has been laid before, and approved by a resolution of, each House of Parliament.

(3)A statutory instrument containing any order or regulations under this Act, other than an order under section 28, 30 or 65, shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(4)Any order or regulations under this Act may make different provision for different cases or circumstances.

(5)Any order or regulations under this Act may make such incidental, supplemental and transitional provision as the person making the order or regulations thinks appropriate.

61 Directions.U.K.

Any directions under this Act shall be given in writing and may be varied or revoked by subsequent directions.

62 Expenses.U.K.

There shall be paid out of money provided by Parliament—

(a)any expenses of the Secretary of State or the National Debt Commissioners attributable to this Act, and

(b)any increase attributable to this Act in the sums payable out of money so provided under any other enactment.

63 Northern Ireland.U.K.

(1)This Act extends to Northern Ireland (except so far as it amends enactments that do not extend there).

(2)Subject to any Order made after the passing of this Act by virtue of section 3(1)(a) of the M21Northern Ireland Constitution Act 1973, matters relating to the National Lottery that are not excepted matters for the purposes of that Act shall not be transferred matters for those purposes but shall for the purposes of section 3(2) of that Act be treated as specified in Schedule 3 to that Act.

64 Repeals.U.K.

The enactments mentioned in Schedule 10 are repealed to the extent specified in the third column of that Schedule.

65 Commencement.U.K.

This Act shall come into force on such date as the Secretary of State may by order appoint; and different dates may be so appointed for different provisions or for different purposes.

66 Short title.U.K.

This Act may be cited as the National Lottery etc. Act 1993.