Capen’s CEO Simon Rydings, 50, received a three-month sentence after failing to pass on the proceeds of a lottery his company ran on behalf of Sheffield Hospitals Charity. In addition, he must pay £1,000 in compensation within 18 months of leaving prison.

In a case prosecuted by the Gambling Commission and heard by Birmingham Magistrates’ Court, Rydings admitted to misusing lottery proceeds between 1 January 2018 and 31 March 2020. However, he told the court that he was unable to repay the full £285,000 as he had spent all the money on other costs involved with running the business.

“Lotteries in this country can only be run for good causes — charities and other non-commercial organisations who run lotteries rely heavily on the income they receive from lotteries to support the important work they do,” said GC Executive Director Helen Venn.

“Simon Rydings completely failed as the CEO of a company with a Gambling Commission licence (ELM) and is now paying the price.

“Consumers in this country deserve to know that when they enter a lottery they are helping support their chosen cause – and we will not hesitate to take action against individuals who misuse funds in the way Rydings did.”

Capen’s operating licence was suspended in December 2020 after the GC launched a review into its activities. At the time, the Commission invoked section 116 of the Gambling Act 2005, citing concerns that activities may have been carried out contrary to the law.