The guidelines of Dutch Gambling Authority: 5 things you need to know

Organizing a digital lottery is an effective way to raise funds, but it comes with strict regulations. The Dutch Gambling Authority (Kansspelautoriteit, Ksa) enforces these rules rigorously to ensure that games of chance are safe, fair, and transparent for all participants. Compliance is essential to avoid fines, reputational damage, and legal issues. At Lotify, we understand that these regulations can seem complex. That’s why we offer organizations an all-in-one platform for running online games of chance, fully integrated with these guidelines, so you can focus on making an impact with confidence and peace of mind.

These are the 5 guidelines every organizer must know:

1. Always apply for a lottery license

Obtaining a license is the crucial first step in organizing a lottery. According to Ksa regulations, this is mandatory to prevent illegal activities such as money laundering or fraud. The licensing requirement ensures fair treatment and equal winning chances for participants. A lottery license includes details such as the lottery’s purpose, ticket price, and prize package. At Lotify, we take care of this entire process for you. We guide you through the application process and ensure that all necessary documents are submitted correctly.

"The Lotify platform took care of everything for us, including the license application." – VV Katwijk

2. Contribute at least 40% of proceeds to a charity

One of the most important Ksa guidelines is that at least 40% of proceeds must go to charity. This ensures that lotteries genuinely contribute to social causes. At Lotify, we go the extra mile. With our transparent approach and user-friendly software, we not only help organizers meet this requirement but also make it easy to exceed it. We aim for a higher contribution because we believe in maximizing value for charitable causes.

3. Protect participants' personal data in compliance with GDPR

The Ksa imposes strict requirements for data protection. Organizers must handle participants’ personal data responsibly and in line with the General Data Protection Regulation (GDPR).

This means:

• Data may only be used for the lottery’s specific purpose

• Data must be securely stored

• It cannot be used for other purposes without explicit consent

Lotify ensures full GDPR compliance. All participant data is stored within the EU, under strict privacy regulations.

"Lotify is the only SaaS (Software as a Service) platform for lotteries and sweepstakes in the Netherlands that uses a GLI-certified drawing mechanism." – Pim Vogels, Chief Technology Officer at Lotify

4. Clearly communicate prizes and winning odds

The Ksa requires that participants receive clear information about prizes and odds of winning. Organizers must clearly communicate the composition and exact value of the prize package. Winning odds must also be explicitly stated so that participants know their chances of winning. Did you know that adding extra prizes during an ongoing lottery is allowed, but removing prizes is not? This transparency prevents misleading practices and ensures that participants are well-informed. Complying with these rules is essential for a fair, reliable, and responsible lottery.

5. Use a fair and independently verifiable draw method

The Ksa requires that lottery draws are transparent and independent. This means using a certified draw system or a notary to prevent any manipulation or influence over the results. These regulations guarantee a fair gaming experience for participants, fostering trust. Lotify is the only provider in the Netherlands offering lottery software with a GLI-certified draw mechanism, ensuring that winners are always selected randomly. For each draw, we also provide a digital drawing report that can be reviewed by a notary, for example.

The risks of ignoring Ksa guidelines

Ignoring these rules can have serious consequences:

• The Ksa imposes hefty fines of up to €900,000 or 10% of your revenue.

• If the violation is not stopped immediately, a penalty can be enforced.

• The Ksa can revoke your license if conditions are not met.

• Non-compliance leads to negative publicity and reputational damage.

Simplify compliance with Lotify

Want to avoid these risks and ensure full compliance with Dutch Gambling Authority regulations?
Contact us for a free consultation and discover how Lotify can support your organization every step of the way.

Want to learn more about the full requirements for organizing a lottery? Visit the website of the Dutch Gambling Authority.