How to organize your own social lottery?

Organizing a social lottery: everything you need to know to make it a success

Are you looking for new ways to raise money for your charity, sports club, or local initiative? Without putting too much strain on your volunteers? Then organize a social lottery. In this article, we’ll explain everything about what a social lottery is, who it benefits, and what it takes to organize one.

What are social lotteries?

Social lotteries are a type of fundraising lottery, meaning they aim to generate the highest possible percentage of proceeds for a charitable cause.

When organizing a social lottery, participants can purchase tickets online and have the chance to win one or more prizes. As the name suggests, social lotteries always serve a social purpose. At least 40% of the proceeds must go to a charity that serves the public interest. Eligible causes include:

Sports and well-being
Culture
Education and science
Nature and environment
Healthcare
Development aid
Animal welfare

Social lotteries can never serve individual or commercial interests but must always contribute to society. Or, as we like to say: social lotteries create social impact.

Raising funds for a good cause

A digital lottery offers a fantastic opportunity to raise funds for a good cause while increasing engagement. What may initially seem like a complex task becomes simple and manageable with our online lottery platform. We take care of the organizational challenges, from legal regulations to technical execution. This allows organizers to focus entirely on what truly matters: selling as many tickets as possible and raising funds for their cause.

Legislation and regulations for social lotteries

In the Netherlands, lotteries fall under the Gambling Act (Wet op de Kansspelen). If you organize an event where money or prizes can be won, and the player has no control over the outcome, it is classified as a game of chance.

To protect participants from addiction and fraud, and to prevent money laundering, the Gambling Act sets out regulations to minimize risks. These include:

Requiring licenses for gambling operators
Monitoring compliance and setting license conditions
Enforcing actions against illegal gambling activities

The Dutch Gambling Authority (Kansspelautoriteit - Ksa)

The Kansspelautoriteit (Ksa) is the regulatory body overseeing the gambling sector in the Netherlands. It is also responsible for granting lottery licenses.

If the total commercial value of all prizes exceeds €4,500, you must apply for a license from the Kansspelautoriteit. If the total prize value is below €4,500, you apply for a license from your local municipality.

Important: When applying for a license, you need to estimate whether the total value of the prizes will exceed or stay below €4,500. You don’t need to specify the exact prize package at the time of application—you can adjust and finalize it after obtaining the license. However, once a license is granted, the total prize value cannot exceed or fall below the approved amount.

Applying for a lottery license

To organize a social lottery, obtaining a one-time lottery license is mandatory. Keep the following conditions in mind when applying for your license:

At least 40% of the proceeds must go to a good cause
Up to 60% of the proceeds can be used to cover costs such as notarization, accounting, prize money, marketing, and gambling taxes
A notary must be present during the draw, and the draw must be publicly accessible
The lottery’s promotion, ticket sales, and draw must all occur within six months
A maximum of 13 draws can be held within this period
Each draw can include multiple prizes
Once a ticket is purchased, it remains valid for all upcoming draws
If outsourcing (part of) the lottery, a written agreement with the third party is required
After the draw, a financial report must be submitted to the licensing authority
Gambling tax applies to prizes over €449

Want to know more about lottery licenses? Read here about when a license is required and how to apply.

Plan ahead

When applying for a license, you must specify the estimated number of tickets to be sold and ticket price on the application form.

The Kansspelautoriteit takes 6-8 weeks to process a license application
Municipalities process applications within 6 weeks
License fees vary per municipality and depend on the total prize package

Minors and social lotteries

Participants under 18 years old are not allowed to take part in social lotteries. The developing brains of minors make them more susceptible to gambling addiction.

Always verify a participant’s age before selling a ticket
Minors cannot sell tickets on behalf of the lottery, meaning door-to-door sales by children are prohibited unless otherwise permitted by the Kansspelautoriteit

Choosing the right charitable cause

You might associate charitable causes with large national organizations, but social lotteries are also perfect for local initiatives.

Some examples include:

New changing rooms for the local sports club
Renovating a community center’s roof
Providing food for animals in a zoo
Buying new musical instruments for a local music group

You don’t need to be a foundation or association to organize a lottery—as long as at least 40% of the proceeds go to a cause of public interest.

How long does it take to prepare a lottery?

Organizing a social lottery may seem time-consuming, especially the licensing process. However, good preparation is half the battle!

The Kansspelautoriteit processes applications within 8 weeks
Municipalities process applications within 6 weeks

Make good use of this time by:

Assembling your prize package
Setting up your lottery website
Registering with a payment provider (e.g., CM.com, Mollie, Buckaroo)

How to create an attractive prize package

A well-chosen grand prize can significantly boost ticket sales.

Find sponsors

Not everyone has prizes readily available, and purchasing prizes reduces the funds raised. A smart strategy is to approach sponsors to donate prizes in exchange for brand exposure.