A proposal for Rugby Borough Council to create its own lottery to support local good causes has been passed.
The proposal was agreed at a meeting of Rugby Borough Council on Thursday last week, with a amendment calling for greater scrutiny.
Liberal Democrat councillors Jerry Roodhouse and Neil Sandison tabled the amendment with the intention of ensuring ‘greater scrutiny’ takes place before the scheme is given the go ahead.
The amendment states that the communities and homes portfolio holder and head of communities and homes should present the business case to scrutiny prior to any launch of a council-led lottery.
The amendment means councillors, rather than council officers, will have the chance to consider the viability of the scheme before it is given a final go-ahead.
The cabinet report states the lottery could serve “as a means to help support the local community and voluntary sector”.
The report estimates the start-up costs for the scheme would be £8,000 – consisting of £5,000 for a gambling licence and Lotteries Council membership fee for the first year as well as £3,000 minimum for marketing to launch the scheme.
The cabinet report estimates ongoing annual costs to be £10,000.
The business case for the lottery to be presented for scrutiny will focus on the appetite of the voluntary and community sector (VCS) for such a scheme, the number of ticket sales required to make it work, the potential revenue income for the VCS , ongoing resource requirements and risk.
In other areas with council-led lotteries up to 60 per cent of the money players pay goes towards charities and organisations.
The precise level of funding for good causes in Rugby is likely to be decided as part of the business case. If greater prize money is needed to attract sufficient players it may require a lower percentage to go to charities, and vice versa.
Aylesbury Vale District Council approved the introduction of a similar scheme in 2015 – although many councillors were strongly opposed. A similar scheme has also been backed by Daventry District Council.
In Daventry district the lottery will have a fixed prize amount for each draw, with set prizes awarded for matching certain numbers of the balls drawn. The lack of a roll-over means more money can end up going to the charities.