UPDATE November 2020 – This is resolved – download the attached 22 page Legal Classification Advice – read the Conclusion on the last 2 pages.
I’ve had a few charities ask me if they need a Gambling Licence to operate the balloon race. After looking into this I’ve come up with a solution but wanted to make Charities aware of the situation.
One charity contacted their local council and was told to buy a “Small Society Lottery Licence” for £40. This is OK if the total funds raised are less than £20,000 and the charity is the main benefit from the race (not a company or individual).
I am in the process of changing the software to allow free entry (when using the Get a Balloon button). With free entry there is no requirement for a Gambling Licence as the software becomes a “Prize Draw”. It won’t be possible to add a message to a balloon with the free entry option and as the balloons are usually only £3 I don’t feel it will make a massive difference.
Most charities sell the balloons from their own websites so I wanted to make you aware of this. If you offer a free entry of some kind a License is not required.
Laws may change in different countries so you should contact your local Gambling Commission.
UPDATE 07/08/2020 – We applied for a licence and paid the application fee.
UPDATE 27/10/2020 – The situation is resolved and we’re changing the software.
UPDATE 10/11/2020 – See also Making it Legal