Territorial Extent Schedule 10: Family Entertainment Centre gaming machine permits Part 11: Lotteries Section 258: Promotion of lottery
630.This section makes it an offence to promote a lottery, but no offence is committed under this section if the person concerned holds and complies with an appropriate operating licence; or the person acts (except as an external lottery manager) on behalf of someone who holds such a licence, and the activity in question is carried on in compliance with that licence. Operating licences can be issued to local authorities, larger non-commercial societies, or to an external lottery manager acting on their behalf (see Part 5 for details of these procedures).
631.In addition, no offence is committed if the lottery falls into one of the exempt categories set out in Schedule 11. These are:
	incidental non-commercial lotteries;
	private lotteries;
	customer lotteries; and
	small society lotteries (i.e. society lotteries which do not generate sufficient proceeds to require an operating licence from the Commission, and are instead required to be registered with the local authority).
632.It will be a defence for the person to show that he reasonably believed that he was not committing the offence because:
	the lottery was an exempt lottery under Schedule 11, or a lottery operating licence was held and complied with;
	the arrangement was part of the National Lottery; or
	the arrangement did not fall within the definition of “lottery” under Part 1.
633.There is a further defence set out in section 265, where a person reasonably believed that the lottery was not one to which this Part applied because it was outside the territorial application of this Part.