These regulations prescribe, for the purposes of paragraphs 3 and 4 to Schedule 11 of the Gambling Act 2005, the maximum sums that the promoters may deduct from the proceeds of an incidental lottery in respect of the cost of prizes and costs incurred in organising the lottery. They are being made following the amendments in article 2 of the Legislative Reform (Exempt Lotteries) Order 2016 (S.I. 2016/124). Article 2 of that Order amends the exemption for incidental lotteries in Part 1 of Schedule 11 of the Gambling Act 2005, so that it is no longer limited to lotteries that are incidental to a non-commercial event.