A society that has been registered to run lotteries has a range of responsibilities that fall into several categories:
In addition to the once-off fees payable when application is made to register the society with the NLC and to register a scheme for running lotteries, there are other fees payable to the NLC for each lottery that is run.
The National Lotteries Commission requires assurance that a society offering lottery prizes of R10 000 or more is capable of paying these prizes. The society is likely to be required to:
It should be noted that the commission has the right to waive payment of fees and to review the fee structure annually.
|Type of fee||Amount|
|Registration of a society||R500-00|
|Registration of a scheme||R100-00|
|Annual fee to renew society registration||Presently waived|
|Society lottery fees (payable per lottery)|
|Where total prize value does not exceed R10 000||No fee|
|Where total prize value exceeds R10 000 but not R50 000||R200-00|
|Where total prize value exceeds R50 000 but not R100 000||R300-00|
|Where total prize value exceeds R100 000 but not R500 000||R500-00|
|Where total prize value exceeds R500 000 but not R1 million||R1 000-00|
|Certification fee for lottery manager|
|Annual payment per manager||R5 000-00|
|Fee for inspection of lottery return|
|Fee per inspection||R25-00|
After completion of each lottery run in accordance with its approved scheme, the society must submit to the NLC a return, utilising form SL14/00. This form can be downloaded here or obtained from the Information Centre (Tel: 08600 65383).
The return must reach the commission within three months of the date of the lottery draw or date of sale of the last tickets in an “instant lottery”.
The purpose of the return is to:
The return submitted must:
Societies are also required to submit original beneficiary receipts of lottery proceeds accompanied by Form SL20, which can be downloaded here. This should preferably be submitted at the same time as the lottery return.
The law requires that societies submit financial statements in respect of all lotteries conducted in their name during the course of a year.
As indicated below, the NLC has the right to inspect any society lottery operation at any time. This underscores the need for lottery organisers to ensure, before proceeding with a lottery, that good record-keeping and accounting procedures are put in place.
It is also important that separate records are kept for each lottery and there is no overlapping or merging or records.
The NLC recommends that the following basic records should be maintained.
Societies operating under NLC registration are required to preserve all documents related to the running of their lotteries for at least five years from the date of the lottery. Failure to do so could result in registration being revoked.
The only relaxation of this requirement pertains to large numbers of unsold tickets, which could be bulky and create storage problems. The NLC allows that these may be destroyed 12 months after the completion of the lottery provided that:
The NLC has the power to inspect lottery operations at any point and does this through its inspectorate. An inspection involves a detailed examination of all records and possibly the copying of these records.
There is a continuous programme of inspections of lottery operations to establish that lotteries are being properly and lawfully managed.
Where records are properly kept and stored, the inspection process is likely to proceed smoothly.
It is acceptable for a society to employ an external manager to run its lotteries. But societies must be aware that external managers need to be certified by the NLC in order to offer their services legally. The onus is on the society to ensure that the manager it is hiring is in fact certified and that the contractual arrangements include safeguards against the failure of the lottery.
Societies may also hire service providers to assist in organising lotteries. The scope of their services and degree of responsibility would not amount to managing the lottery and the question of certification would not arise.