A club may run these draws, together with variations such as 50 or 100 clubs. The 200 Club will normally fall into the ‘private lottery’ category and its associated restrictions will apply. A typical scheme would work as follows: 200 people all of whom must be existing club members pay £1 per month, each participant is given a number which is then drawn monthly for cash prizes.
Prizes vary according to the amount you wish to make – about 50% of the takings is usual. There are usually two prizes per month, one for say £40 the other for £20; in addition there is a further prize of either £100 or £200 every three months. Total prize money is £1220 (12 x £20; 12 x £40; 3 x £100; 1 x £200) gross income is £2400 resulting in a surplus of £1180 per annum less administration expense.
While this appears straightforward such a result demands a great deal of time and effort. The steps to follow are as follows:-
1. The organiser must be a club member authorised in writing by a committee resolution duly recorded in the minutes.
2. Estimate the number of members likely to participate and calculate the prize structure. As a precaution against failing to reach the planned membership the advertised prize list should make provision for a reduced prize structure.
3. Consider the method of payment. Monthly collection in cash soon becomes a major chore, monthly standing orders involve bank charges, annual payment if possible is best.
4. Canvass all club members to join.
Make the monthly draw at a club function to help advertise the scheme and raise revenue.