Governance & Transformation and Commercial Enterprise Cabinet Members – Minutes – 21 December 2016

3 (3) NORTH LINCOLNSHIRE COMMUNITY LOTTERY – The Director of Policy and Resources submitted a report informing the Cabinet Members of opportunities associated with a community lottery for North Lincolnshire and seeking approval to undertake a soft market testing exercise.

In October 2015 the Policy and Resources Cabinet Member approved a Commercial Strategy 2015-19 (minute 26 refers).  The strategy set out the council’s vision, aspirations and ambition for future income generation.  The changing landscape for local government demanded innovation in service delivery in order for councils to achieve their financial plans and corporate strategy objectives.

Lotteries had long been a way for small organisations and charities to raise income. They were regulated by the Gambling Act 2005 and those running lotteries needed to be licensed by the Gambling Commission. There were eight different types of lottery recognised in the legislation, including a specific “local authority lottery‟.

The main benefits of running a local lottery were:

• community organisations could raise money to support their initiatives
• provided an alternative mechanism for financially supporting the voluntary sector, cultural activities and other services that provided community value
• improved partnership working between the council and voluntary sector
• created an opportunity that could cushion future impacts associated with reductions in council expenditure

The council could appoint an External Lottery Manager (ELM) to manage the lottery on its behalf in accordance with the Gambling Act 2005 subject to obtaining the necessary consents from the Gambling Commission.

Initial research had shown that there were in excess of twenty licensed ELMs in the market place and it was proposed that a soft market testing exercise was undertaken, followed immediately by the procurement of an external lottery manager and application for a lottery operator licence.

Resolved – (a) That a soft market testing exercise of External Lottery Managers, to inform the business case and contract specification, be approved, and (b) that a procurement process and application for local authority operating licence be initiated immediately following the conclusion of the soft market testing exercise.