When do I need a lottery license?

If you're planning to organize a lottery, it's important to know whether you need a lottery license. Lotteries is a popular way to raise funds for charitable causes or offer exciting prizes to participants. In this article, we explain when a lottery license is required, the different types of licenses available, and the maximum prize value allowed for each license type.

What Is a Lottery License?

A lottery license is an official permit from the government (KSA) or local municipality that allows you to organize a lottery legally. Having a license ensures compliance with the law and prevents legal issues. The license also sets specific rules and regulations that must be followed when organizing the lottery.

For a private lottery, such as one held at a closed event, no license is required. However, for a public lottery, a license is always necessary, though the type of license may vary. Want to know which lottery license you need? Read on!

Municipal License

If you are organizing a small-scale lottery, such as a neighborhood or club lottery, you will typically need a municipal license. This permit is issued by the local municipality where you plan to hold the lottery. Rules and requirements may vary, so it's important to check with your local authorities for specific details.

Prize Limits for a Municipal License

The total prize value for a municipal license is often capped. In most cases, the total value of all prizes combined must not exceed €4,500. Exceeding this limit may result in legal consequences or penalties.

National Lottery License

For large-scale lotteries, a national lottery license is required. This license is issued by the Dutch Gambling Authority (Kansspelautoriteit – KSA), which regulates gambling activities in the Netherlands.

Prize Limits for a National Lottery License

A national lottery license allows for a much higher prize value compared to a municipal license. In many cases, total prize values can reach several million euros. If you want more details about this type of license, feel free to contact us.

Conclusion

To ensure your lottery is legal and compliant with regulations, it's essential to determine whether you need a license and which type is required. Small-scale lotteries typically need a municipal license, while large-scale lotteries require a national license from the Dutch Gambling Authority. Make sure you understand the rules and do not exceed the maximum prize limits to avoid potential legal issues.

Ready to organize your lottery? Check out our blogs for more tips and guidance, such as a step-by-step guide to applying for a lottery license or tips for running an online lottery.

Still unsure about the right license for your lottery? Contact us! We’re happy to guide you through the entire process—from organizing your lottery to securing the necessary license.