When do I need a lottery license?

Planning to run a lottery to raise funds for your charity or association? Then it’s essential to know when a lottery license is required. Without the proper license, you risk fines, legal issues, or even a shutdown of your fundraising activity. In this article, we’ll clearly explain when a lottery license is needed, the exception to this rule, what types of licenses exist, and what you need to consider—especially regarding prize limits.

When Is a Lottery License Required?

In the Netherlands, you need a lottery license when participants pay for tickets and have a chance to win prizes. This requires official approval from either the local municipality or the Dutch Gambling Authority (Kansspelautoriteit, or Ksa). The aim of this licensing system is to keep lotteries safe, fair, and transparent for everyone involved.

There are different types of licenses, depending on the scope and structure of your lottery.

What Types of Lottery Licenses Are There?

Lottery licenses in the Netherlands can generally be divided into two categories: municipal licenses and major lottery licenses issued by the Ksa. Rules and conditions for municipal lottery licenses can vary by municipality. A major lottery license from the Ksa is more complex to obtain and requires extensive documentation and strict compliance with gambling regulations.

At Lotify, we take the entire license application process off your hands, so you can be sure that everything is handled correctly and in full compliance with the law.

Lottery License Overview

What Does “Maximum Prize Package Value” Mean?

The maximum prize package value refers to the total combined worth of all prizes awarded in your lottery.

• For municipal licenses, this value is typically capped at €4,500.

• For major lottery licenses, the limit can run into the millions of euros, depending on the structure and scope of the campaign.

It’s crucial to stay within these limits—exceeding them can result in fines or revocation of your license.

When Is a Lottery License NOT Required?

In rare cases, a lottery license is not needed. This exception applies only if all of the following conditions are met:

• The lottery is held during a private gathering or within a closed group, such as among coworkers at a company or family members at home.

• There is a clear, pre-existing relationship between participants and the organizer (e.g., club members).

• No public advertising is used to promote the lottery.

If any of these conditions aren’t met, a license is required.

Ready to Organize Your Lottery?

Want to be sure your lottery meets all legal requirements and runs smoothly from start to finish? Get in touch with us for a free consultation. Lotify guides you through the entire process, including the application for the right license—so you can focus on making an impact.

Want to learn more? Visit the official website of the Dutch Gambling Authority (Ksa) for more information on lotteries.