Earlier quoted context omitted.
Here's the definition of a "lottery" under the uk gambling act "(2)An arrangement is a simple lottery if— (a)persons are required to pay in order to participate in the arrangement, (b)in the course of the arrangement one or more prizes are allocated to one or more members of a class, and (c)the prizes are allocated by a process which relies wholly on chance." There is also a complex lottery where the process begins w…
> and (c)the prizes are allocated by a process which relies wholly on chance." This part sounds leaky to me. Game producers might assign prizes which are based e.g. 99% on chance and 1% on skill.
You can (and at least two big companies do) make money from operating a lottery on behalf of a charity, but you can't run a lottery where the profits themselves go somewhere other than a "good cause" such as a charity. And the UK has tighter regulation than the US of charities so it's harder to have a "charity" that basically just puts money into your own pockets.