Issue - meetings

To consider the attached report of the Director of Finance, Housing and Community.

The Head of Community Services presented the report on the Launch of a Local Authority Lottery.

The proposed Dover District Lottery would raise new funds for participating local good causes, and would help to fund an increase in the DDC Community Grants programme. The good causes would receive 50p in very £1 which would provide for a regular income stream to support their work in the community at no cost to them.

The players would have the option to specify which participating good causes they wanted to support, as well as making a 10p contribution to a Central Fund which would increase the amount of funding available to community groups and projects via the DDC Community Grants programme. Where players opted not to support specific good causes, 60p in the £1 was apportioned to the Central Fund.

It was emphasis to Members that while this was a lottery it wasn’t about gambling but rather providing an additional income stream to support the local voluntary sector and building social capital. The Council would also provide support to help the voluntary sector meet the governance arrangements needed to be eligible for the lottery scheme.  

In response to strong concerns expressed by Members that this would promote and normalise gambling, the Head of Community Services advised that there were robust safeguards in place and the nature of the registration process prevented any of the ‘instant gratification’ associated with gambling.

Members also expressed concern about the lottery being run by an external company and the use of Council funds to ‘pump prime’ the lottery.  

RESOLVED: That it be recommended to Cabinet that it not proceed further with plans to launch a local authority lottery for the Dover District (as per Option 2 of the report) until clarity can be provided to answer the concerns of the Scrutiny (Policy and Performance) Committee as follows:

(a)       What would happen to any monies in the prize fund should the lottery be wound up. 

(b)       What limit, if any, is proposed for the number of tickets that an individual can purchase.

(c)     That further information be provided in respect of safeguarding arrangements for individuals signing-up to the lottery. For example, whether registrations will be monitored, what arrangements, if any, are in place for spot checks to be undertaken to ensure people can afford the contribution and what consideration has been given to how operating a lottery affects the Council’s health and wellbeing responsibilities.

To consider the attached report of the Director of Finance, Housing and Community.

Responsibility: Portfolio Holder for Community Services

It was agreed:    (a)     That the Director of Finance, Housing and Community be authorised to make an application for, and accept a Gambling Commission licence on behalf of, the Council to operate a local authority lottery under the Gambling Act 2005 as amended.

(b)     That the Gambling and Lottery Policy be approved.

(c)     That, for greater assurance, the use of an External Lottery Manager who has worked with other Local Authorities running similar schemes be approved.   

(d)     That the Director of Finance, Housing and Community be authorised to appoint an External Lottery Manager (ELM) to run the day-to-day operations of the lottery, for an initial one-year period, ensuring compliance with procurement standing orders and obtaining of competitive quotes where applicable.

(e)     That the eligibility criteria for good causes to participate in the Dover District  Lottery be approved.

(f)      That the apportionment of the Central Fund to the DDC Community Grants programme be approved.

(g)     That Dover District Council’s membership of the Lotteries Council, in order to demonstrate best practice and provide access to free membership services on legal and compliance issues, be approved.

(h)     That the Director of Finance, Housing and Community be authorised to discharge the powers and functions of the Council in relation to the running of a local authority lottery.