How to launch and grow a successful charity lottery
For many charities, one of the biggest challenges is generating a sustainable, predictable income stream. Grants fluctuate, donations can vary year to year, and event income is often short term.
Given this, lotteries can provide a reliable solution and deliver a regular monthly income while engaging supporters in a meaningful way. According to Mintel, almost two-thirds of UK adults played a lottery or lottery-style game during the 12 months to October 2024.
However, running a lottery is about far more than simply selling tickets. It requires careful planning, strong partnerships, and a commitment to compliance and good governance.
We have been running the Veterans’ Foundation Lottery for almost a decade now and are one of the larger lotteries licensed by the Gambling Commission, with an incredible £2,577,205.80 awarded in total to 10,897 players to date.
But along the way we have learnt some valuable lessons. From building the platform and attracting supporters to ensuring compliance and retaining players, each stage has presented some challenges. While our experience is rooted in the armed forces community, I hope these lessons are useful for charities exploring if lotteries are right for them.
Choosing the right approach
Charities have different routes into lotteries depending on their size, ambition, and resources. For smaller or local organisations starting out, a small society lottery registered with their local council can be an accessible starting point. These lotteries involve light touch regulation, with manageable requirements such as preventing underage sales, allocating proceeds correctly and submitting post-draw reports. Small society lotteries can be operated nationally although they are subject to financial limitations.
For charities with greater ambitions or aiming for national reach, a full operating licence with the Gambling Commission may be required. Here, the regulations are stricter, reporting is more detailed, and governance obligations more demanding. At the Veterans’ Foundation, we recognised early on that a national lottery could reach tens of thousands of supporters and provide substantial income for armed forces causes, making the operating licence route the right choice for us.
Working with the right partners
For us, partnerships were essential from the outset. From day one we partnered with Bee Ethical, a specialist in charity lotteries, to help design and manage our platform. As a critical, strategic partner, they have supported everything from our setup to the technology platform, to our growth strategy, marketing and ticket sales. Their expertise allowed us to focus on our charitable mission while scaling responsibly.
The lottery is marketed and promoted through Bee Ethical Media, and we work with law firm Poppleston Allen who are specialists in helping clients obtain and protect licences for alcohol, gambling, entertainment and other sectors. They oversee our lottery administration, reporting and internal processes.
We have found that working with a strong external lottery manager and other partners has ensured transparency, responsible gambling and ongoing reporting.
Our trustees receive regular updates, and the lottery is treated with the same seriousness as any major revenue stream. These partnerships have enabled us to scale responsibly, ensure effective governance and compliance, and maintain trust with our supporters.
Compliance and governance
Whether running a small local lottery or a national operation, charities must ensure proceeds are allocated correctly, prizes and expenses are reasonable, and systems prevent underage gambling. For us, this meant building a fully compliant platform from scratch, designed specifically around Gambling Commission regulations.
The platform needed to manage entries, draw mechanics, prize allocation and reporting seamlessly. Bee Ethical ensured the technology and daily operations met regulatory requirements while allowing us to maintain oversight.
Even with strong external support, the executive members on the licence retain ultimate responsibility and, together with the trustees, maintain oversight for governance purposes. Clear governance structures, regular reporting and auditing ensure every aspect of the lottery is compliant and transparent.
Large society lotteries like ours must be licensed by the Gambling Commission, with at least 20% of proceeds going to good causes and with strict oversight of prizes, expenses, and responsible gambling practices. This framework protects the public, maintains trust and ensures the lottery delivers genuine benefit.
Storytelling and authenticity count
One of the most powerful lessons we have learnt is the importance of storytelling, and how this particularly resonates within the armed forces community. People respond strongly to real stories about the lives the charity impacts, and that connection has supported our growth.
Our supporters are motivated by our sense of purpose and connection, as well as seeing firsthand how their contributions support veterans’ lives. When supporters can clearly see our mission in action and hear the real stories of those we help, it strengthens their trust and commitment, encouraging them to stay engaged and advocate for the cause with us.
Launching and acquiring players
In the early days of running a lottery, growth can be slower than expected. A lottery will not succeed simply because you have launched it; it needs a structured acquisition strategy, with a long term plan.
For us, sustained growth was achieved through consistent marketing, social media campaigns and building partnerships within our existing supporter networks.
Player retention was another key focus. Like any fundraising initiative, this involved providing regular updates on the lottery’s impact, recognising loyal supporters and maintaining thoughtful stewardship—all of which help ensure long term participation.
We also engaged Bee Ethical Active to drive face-to-face sales and Bee Ethical Media’s ongoing marketing support allows us to continually evolve our approach and reach supporters with fresh, relevant content, keeping them engaged over time.
Financial models and prize structure
Designing a sustainable financial model is critical. Prize structures should be attractive but sustainable. Every ticket is eligible for main prizes, with additional mechanisms for bonus draws. Careful management of rollovers and prize allocation ensures financial viability and maintains excitement without risking overspending. We recognise that every decision must balance supporter appeal with responsible stewardship.
Key aspects to remember
Over the past decade, as you can imagine, there are some key aspects we have had to remember along the way. Here they are:
- Treat the lottery as part of your mission—if you sell it as just a game, you miss the chance to build deeper relationships with supporters.
- One-off campaigns will not necessarily lead to success; we have found that consistency and persistence are essential, and it takes time and reinvestment to build momentum.
- Regulatory compliance cannot be underestimated; lotteries are regulated forms of gambling, so it is vital to understand the rules, seek expert advice and embed responsible gambling in everything you do.
- Finally, it is important to be authentic and keep your story telling clear to build trust and loyalty amongst your players.
Other lessons we have learnt
We have found that having great partnerships are essential, and working with specialist partners can provide guidance and expertise our internal teams may lack.
We have also recognised player behaviour changes over time, so it is important to review data and adapt strategies to retain and acquire new players.
Over the years, we have adapted our marketing strategies and improved engagement techniques based on data and feedback.
We have also not been afraid to experiment, sometimes getting it wrong, and we have always used those lessons to improve.
It is obvious that compliance is critical, protecting both the charity and its supporters. Equally, sustainability over short term wins is essential and the lottery should be treated as a long term asset, not a quick fundraiser.
Benefits of running a lottery
Lotteries can provide a charity with predictable recurring income, allowing better planning and long-term initiatives. They can also encourage community engagement, as regular draws create touchpoints for supporter interaction.
For the Veterans’ Foundation, our lottery has become one of the largest sources of funding, supporting hundreds of projects for ex-service personnel and their families across the UK. From mental health services to homelessness support, through to education and welfare support, the money raised has tangible impact, and sharing these successes strengthens supporter loyalty.
More than a fundraising tool
Running a charity lottery is both an opportunity and a responsibility. It requires careful planning, strong partnerships, adherence to regulations and a deep understanding of your audience.
Our lottery is not just a revenue stream, but a way to connect our supporters to a cause they care about and ensure the armed forces community receive the support they deserve.
Next year marks ten years since The Veterans’ Lottery started, and it is clear what the benefits have been. The lottery has enabled us to engage supporters, be sustainable, plan for the long term, and provide grants to over 500 armed forces charities.
We have found that a focus on authenticity, our partnerships and commitment to responsibility have been vital for our success, but every charity will have its own approach that works best for them.
To sum up, our experience has shown that a lottery delivered with strong governance, responsibility and authenticity can be far more than a simple fundraising tool—it can be a lifeline for charities, their supporters, and the people whose lives we seek to make a difference to.
