# Charity Lottery, Raffle & Sweepstake | UK Guide | WAN > Source: https://worldaidnetwork.org/charity-lottery > A charity lottery is a licensed prize draw and a form of gambling. Our UK guide explains the rules, how much reaches charities, and why we do not run one. Donor Information # Charity Lottery, Raffle & Sweepstake: The Full UK Guide What is a charity lottery, raffle, sweepstake or prize draw? How does each work, how much of your money reaches the cause, can you claim Gift Aid — and why has World Aid Network chosen not to run any of them? Charity lotteryCharity raffleSweepstakePrize drawSociety lotteryTombolaPostcode lotteryScratch card Direct Answer A charity lottery is a fundraising mechanism where supporters buy tickets for a chance to win prizes, with a share of proceeds going to the charity. Hundreds of major UK charities — across health, social care, children's welfare and older people's services — run them legally under Gambling Commission regulation. **World Aid Network does not run a charity lottery**, as lotteries are a form of gambling and we do not want our fundraising to carry any risk of contributing to gambling harm. **18+** · Charity lotteries, raffles and sweepstakes are forms of gambling. Under UK law you must be 18 or over to take part. If gambling stops being fun, free and confidential help is available at [BeGambleAware.org](https://www.begambleaware.org) or from GamCare's National Gambling Helpline on **0808 802 0133** (24/7). ## What Is a Charity Lottery? A charity lottery — also called a society lottery, charity raffle or charity prize draw — is one of the most common fundraising tools used by UK charities today. Under the **Gambling Act 2005**, charities and community organisations can run lotteries as a form of fundraising, provided they are licensed by the Gambling Commission or registered with their local authority. Participants purchase tickets for a fixed price — typically £1–£2 per entry — and a random draw determines who wins the cash prizes. A defined percentage of every ticket sold is passed to the charity. Charity lotteries are enormously popular across the sector. Hundreds of UK charities — from large national organisations to local hospices — use them to raise funds. The format appeals to supporters because it combines the possibility of a personal financial reward with the knowledge that a portion of their spend benefits a good cause. However, in law and in practice, **buying a charity lottery ticket is gambling** — not donating. The distinction matters both for gift aid eligibility (lottery tickets do not qualify) and for the share of your money that actually reaches the cause. ### Weekly lottery Various national and regional charity lotteries across the UK Supporters pay a fixed weekly fee (typically £1–£2) for a set of numbers. Draws are held weekly and prizes range from a few hundred pounds to a top jackpot, with a percentage of each ticket going to the charity's cause. ### Raffle & prize draw Monthly charity lotteries and annual fundraising raffles Supporters buy a numbered ticket for a one-off or periodic draw. Winners receive cash prizes or goods. Raffles are often run alongside campaigns or events to boost fundraising. ### Postcode lottery Street-based postcode draw schemes Players subscribe using their home postcode. If their postcode is drawn, all players in that postcode win. A portion of every ticket — typically 32–33p per £1 — goes to charity partners. ### Sweepstake Various charity golf days, sporting events Participants pay to enter and are assigned a random outcome (a horse, a team, a player). The holder of the winning outcome receives the prize pot, and the charity keeps the entry fees. ## Charity Lottery, Raffle, Sweepstake & Prize Draw: Key Terms Explained These terms are often used interchangeably — but they have distinct legal meanings under UK gambling law. Charity Lottery also: Society lottery An ongoing subscription draw (weekly or monthly) regulated by the Gambling Commission under the Gambling Act 2005\. Supporters pay per entry; a set percentage of proceeds funds the cause. Charity Raffle also: Prize raffle A one-off or event-based draw where numbered tickets are sold. The draw selects winning tickets at random. May operate as an exempt lottery at a single event without a licence. Charity Sweepstake also: Charity flutter Entrants are randomly assigned an outcome (horse, team, player) linked to a sporting event. The holder of the winning outcome takes the prize pot; entry fees go to the charity. Charity Prize Draw also: Free prize draw A broad term covering any draw for prizes linked to a charity. Must provide a free-entry route to avoid gambling regulation; paid entry converts it into a lottery under UK law. Tombola also: Charity tombola Every ticket wins — participants draw at random from a drum. Unlike a raffle, there is no single winner. Common at fêtes, school events and fundraising days. Often exempt from licensing when run at a single event. Small Society Lottery also: Local authority lottery A registered lottery with annual proceeds under £20,000 and a single draw under £2,000\. Registered with the local authority rather than the Gambling Commission. Common for small charities and sports clubs. Large Society Lottery also: Licensed society lottery A lottery with proceeds exceeding the small society threshold. Requires a full Gambling Commission operating licence. Charity lotteries run by national organisations typically fall into this category. Postcode Lottery also: Street-prize lottery A subscription lottery where all players sharing a randomly drawn postcode win together. Players subscribe monthly using their home postcode; when their street is drawn, all subscribers on that street share the prize. A minimum percentage of every subscription goes to a portfolio of charity partners. Charity Scratch Card also: Instant-win charity lottery An instant-result lottery ticket where the outcome is revealed immediately. Classified as an instant lottery under the Gambling Act 2005; requires Gambling Commission licensing if sold to the public. ## How UK Charities Run Lotteries: Common Formats Hundreds of UK charities use lotteries and prize draws as part of their regular fundraising. These are the most common formats in use across the sector. ### Health-focused charity lottery Weekly numbers lottery Several large UK health charities run weekly numbers lotteries at £1–£2 per entry. Players pick a set of numbers; draws are held weekly with prizes ranging from small cash amounts up to a top jackpot. A defined share of every ticket goes to health-related charitable programmes. ### Patient support charity lottery & raffle Monthly lottery & periodic raffle A number of patient support charities run both an ongoing monthly lottery (typically £2–£3/month) and periodic one-off prize draw raffles. Proceeds fund frontline support services — nurses, helplines and community centres — for patients and families across the UK. ### Postcode-based charity lottery Daily postcode draw Street-level postcode lotteries operate by allocating prizes to all subscribers sharing a drawn postcode. Players subscribe monthly using their home postcode. At least 32% of every ticket is directed to charity partners, spread across environment, health, community and international causes. ### Older persons' charity lottery Weekly numbers lottery Charities supporting older people commonly run weekly lotteries at £1 per play with a top prize of around £1,000\. Proceeds fund telephone befriending, advice lines and community support programmes for elderly people living alone or in need of practical assistance. ### Children's welfare charity lottery Weekly lottery Several children's welfare charities run weekly lotteries at £1 per entry, offering players a roughly 1 in 50 chance of winning a prize each week. Entry fees fund services for vulnerable children and families — early intervention, family support and crisis care. The above charities are well-established organisations doing important work. This listing is for information only. ## How Much of Your Ticket Reaches the Charity? Under UK law, a registered society lottery must return at least **20% of proceeds** to the charitable purpose. In practice, most reputable charity lotteries return 30–45p of every £1 to the cause — the remainder covers prizes, administration, marketing and compliance costs. By contrast, a direct donation to a charity — by bank transfer, online card payment or standing order — typically results in **85–97p in every £1** reaching the cause, after payment processing fees. Add Gift Aid and the charity receives an additional 25p for every £1 donated by a UK taxpayer, at no extra cost to the donor. Charity lottery ticket 30–45p in every £1 reaches the charity Not eligible for Gift Aid Direct donation 85–97p in every £1 reaches the charity \+ Gift Aid adds 25p per £1 Figures are illustrative averages. Actual percentages vary by charity and lottery operator. Our Position ## Why World Aid Network Does Not Run a Charity Lottery We want to be transparent about this decision, because many charities we respect do run lotteries. This is not a criticism of them — it is simply a boundary we have chosen to set for ourselves. A charity lottery is, legally and practically, a form of gambling. Players pay for the chance to win a prize. The element of chance, the repeat purchasing structure, and the possibility of escalating spend are all characteristics that can — for a minority of people — develop into a harmful pattern. Gambling addiction is a recognised mental health condition. It affects approximately 1.4 million people in the UK and is linked to financial hardship, relationship breakdown and, in the most serious cases, suicide. People experiencing poverty — the same people most likely to see a lottery ticket as a meaningful route to financial relief — are disproportionately affected by gambling harm. We fund treatment for people who cannot afford healthcare. We would not be comfortable if our fundraising model carried any risk, however small, of contributing to the financial or psychological harm of the same communities we exist to support. We believe the most honest relationship with our supporters is a direct one. **You give — the money funds surgery, treatment or emergency relief — and we report back on outcomes.** No prizes, no draws, no element of chance. Just direct impact. If you are looking for a way to support World Aid Network, a direct donation — even a small monthly amount — has a greater impact per pound than any lottery ticket and is eligible for Gift Aid. ## Gambling Addiction: What You Should Know Problem gambling affects far more people than most realise. For those affected, or those supporting someone who is, the following information may help. 1.4 million people affected by gambling harm in the UK 1 in 25 UK adults currently experiencing problem gambling 409 gambling-related suicides recorded annually in England £1.8bn lost by problem gamblers per year in the UK ### Signs of Problem Gambling - Spending more than you can afford on gambling or lottery tickets - Chasing losses — continuing to play to try to win back money lost - Gambling secretly or lying to family and friends about it - Borrowing money or selling possessions to fund gambling - Feeling anxious, irritable or preoccupied when not gambling - Gambling to escape stress, loneliness or difficult feelings - Failed attempts to cut down or stop ### How Gambling Addiction Develops Gambling addiction — also called a gambling disorder — develops gradually. It is not a sign of weakness or poor character; it is a behavioural condition driven by the brain's reward system. The intermittent, unpredictable nature of gambling wins triggers dopamine release in a pattern that can become compulsive over time. Charity lotteries, sold on the basis of supporting good causes, can feel more benign than commercial gambling. This framing can lower the psychological barrier to repeat purchasing and make it harder for individuals to recognise when their spending has become problematic. The consequences of problem gambling extend far beyond finances. Family relationships, employment, housing and mental health are all commonly affected. The Gambling Commission estimates that for every one person with a gambling problem, six others — including family members and colleagues — are also significantly impacted. ### UK Gambling Support Helplines GamCare — National Gambling Helpline 0808 802 0133 Free · Confidential · 24 hours a day, 7 days a week Also available via live chat at gamcare.org.uk Gamblers Anonymous UK 0330 094 0322 Peer support · Face-to-face and online meetings gamblersanonymous.org.uk GamStop — Self-Exclusion gamstop.co.uk Free self-exclusion from all UK-licensed online gambling sites Takes effect within 24 hours NHS Problem Gambling Service Via your GP Referral to NHS-funded cognitive behavioural therapy (CBT) Nhs.uk/live-well/addiction-support/gambling-addiction If you are in crisis and need immediate help, please contact **Samaritans on 116 123** (free, 24/7). Give directly ## 100% Direct. No Draws. No Prizes. Every pound you donate to World Aid Network goes directly towards funding eye surgery, cancer treatment or emergency disaster relief for people who cannot afford it. No lottery. No chance element. Just direct impact you can follow. [ £10 diagnostic tests ](/donate?amount=10)[ £25 cancer medication ](/donate?amount=25)[ £50 surgical support ](/donate?amount=50)[ £100 full treatment course ](/donate?amount=100) [Donations opening soon ](/donate) [Other Ways to Give ](/legacy-giving) Donations eligible for Gift Aid · Charitable Incorporated Organisation (England & Wales) ## Frequently Asked Questions What is a charity lottery? A charity lottery — also called a society lottery — is a fundraising mechanism where supporters buy tickets for a chance to win cash prizes, with a percentage of proceeds going to a named charitable cause. They are legal in the UK under the Gambling Act 2005 and regulated by the Gambling Commission. Common formats include weekly number draws, postcode lotteries, monthly raffles, prize draws, sweepstakes and tombolas. Hundreds of major UK charities — spanning health, social care, children's welfare, older people's services and international aid — run lotteries as part of their regular fundraising. How does a charity lottery work? In a typical weekly charity lottery, supporters sign up and pay a fixed amount per entry (usually £1–£2 per week). They are allocated a set of numbers — either chosen or randomly assigned. At a scheduled draw time, winning numbers are selected at random. Prize winners receive cash payouts, and a defined share of all ticket sales is passed to the charity. Some larger-scale charity lotteries work on a postcode basis: all subscribers in a drawn street postcode share a prize pool, and a percentage of each subscription goes to a portfolio of charity partners. Are charity lotteries legal in the UK? Yes. Charity lotteries are legal and regulated under the Gambling Act 2005\. Charities running larger lotteries must hold a licence from the Gambling Commission; those running smaller 'small society lotteries' can register with their local authority instead. All licensed lotteries must comply with rules on prize limits, minimum returns to the cause, and advertising standards. Participation still constitutes gambling under UK law regardless of the charitable context. How much of a charity lottery ticket goes to the charity? By law, society lotteries must direct at least 20% of proceeds to the charitable purpose — but in practice, most reputable charity lotteries return 30–45p per £1\. The rest covers prizes, operator fees, marketing and compliance. By contrast, a direct donation typically delivers 85–97p per £1 to the cause, and qualifies for Gift Aid (adding a further 25p per £1 for UK taxpayers) — significantly more efficient than a lottery ticket. What is the best charity lottery to play in the UK? The 'best' charity lottery depends on what you value. If maximising the share going to charity matters, look for each lottery's published 'return to good causes' percentage — reputable operators make this figure available on their websites or in their annual reports. However, for donors primarily motivated by charitable impact rather than winning a prize, a direct donation to any reputable charity delivers a substantially higher share per pound than any lottery ticket. Lottery tickets are not eligible for Gift Aid; direct donations are. Is a charity lottery the same as a raffle? They are closely related but not identical. Both are forms of gambling where participants pay for a chance to win a prize, with proceeds supporting a charity. In common usage, 'raffle' typically refers to a one-off or event-based draw where physical tickets are sold, whereas 'charity lottery' usually refers to an ongoing subscription-based draw (weekly or monthly). Both are governed by the Gambling Act 2005 in the UK, though small raffles run at events may fall under permitted prize gaming rules and require no licence. What is a charity raffle? A charity raffle is a prize draw run by a charity to raise funds. Supporters buy numbered tickets; a draw selects the winning ticket(s) at random. Prizes are typically cash, goods or experiences. Raffles may be run at fundraising events (in which case they can operate under 'incidental non-commercial lottery' rules without a licence) or as ongoing ticketed draws, which require Gambling Commission registration or licensing. Do I need a licence to run a charity raffle in the UK? It depends on the scale and format. Small 'incidental' raffles run at a single event — where tickets are sold and drawn at the same event and no profits are taken away — do not require a licence. Larger ongoing raffles, where tickets are sold in advance or through multiple channels, must be registered as a society lottery with the local authority (small society lottery) or licensed by the Gambling Commission (large society lottery). Prizes, ticket limits and proceeds rules differ between the two tiers. Can you claim Gift Aid on a charity raffle ticket? No. Gift Aid cannot be claimed on raffle tickets, lottery entries or any payment made in exchange for a chance to win a prize. Gift Aid is only available on genuine donations — payments made without expectation of any financial return. If you want to maximise the tax efficiency of your giving, a direct donation (not a raffle ticket) is the right route. UK taxpayers can also carry back Gift Aid donations to the previous tax year. Is a charity raffle classed as gambling? Yes. Under the Gambling Act 2005, a raffle is a form of lottery and is therefore legally classified as gambling in the UK. This applies whether it is run by a charity, a community group or a commercial operator. Participants are paying for a chance — there is no skill element. This is why the Gambling Commission regulates charity raffles and why raffle tickets are not eligible for Gift Aid. What is a charity sweepstake? A charity sweepstake is a type of prize draw — often linked to a sporting event such as a horse race, football tournament or golf competition — where participants pay to enter and are randomly assigned an outcome (a horse, a team, a player). The holder of the winning outcome receives the prize pot, and the charity retains the entry fees. Like raffles and lotteries, sweepstakes are legally classified as gambling under UK law when a charge is made for entry. Are charity sweepstakes legal in the UK? Paid-entry sweepstakes are classified as lotteries under the Gambling Act 2005 and must comply with society lottery rules — either licensed by the Gambling Commission or registered with the local authority, depending on scale. Free-entry sweepstakes (where no payment is required to participate) are generally not subject to gambling regulation. Many workplace charity sweepstakes fall into a grey area; if in doubt, the Gambling Commission's guidance on 'private lotteries' clarifies the rules for small, closed groups. What is a charity prize draw? A charity prize draw is a general term for any draw-based fundraising mechanism where participants purchase entries for a chance to win a prize. It encompasses lotteries, raffles and sweepstakes. The key legal distinction in the UK is whether payment is required for entry — paid prize draws are lotteries under the Gambling Act 2005 and must be licensed or registered; free-entry prize draws (with a genuine free-entry route) may be run without a gambling licence. How is a charity prize draw different from a charity lottery? The terms are often used interchangeably. In legal terms, both are 'lotteries' under the Gambling Act 2005 if payment is required for entry. In practice, 'prize draw' sometimes refers to one-off draws with set prize structures, while 'lottery' implies an ongoing subscription model. Both require compliance with Gambling Commission rules if they involve a charge for entry and are not run as a small incidental event lottery. What is a society lottery? A society lottery is the legal term used in the UK for a lottery run by a non-commercial society — including charities, sports clubs, community groups and political parties — primarily for fundraising purposes. They are split into 'small society lotteries' (annual proceeds under £20,000, registered with local authority) and 'large society lotteries' (proceeds over £20,000, licensed by the Gambling Commission). The Gambling Commission's licence conditions set rules on maximum ticket prices, prize limits and the minimum share of proceeds directed to the cause. What is the difference between a charity tombola and a charity raffle? In a tombola, every ticket wins a prize — participants draw a ticket and immediately see whether it has a prize attached. In a raffle, only certain tickets win, and the draw is held at a specific time. Tombolas are common at fêtes and school events. Both fall under charity gambling regulation if a charge is made for participation. Small tombolas run at a single event often qualify as 'exempt lotteries' under the Gambling Act and do not require a licence. Do charities run scratch cards? Some charities have run scratch-card style fundraising products, though these are less common than lotteries or raffles. Charity scratch cards constitute a form of instant lottery under UK law and require Gambling Commission licensing if offered to the public. Due to the regulatory burden and the association of scratch cards with impulsive gambling behaviour, most smaller charities opt for simpler raffle or prize-draw formats instead. Why does World Aid Network not run a charity lottery, raffle or sweepstake? World Aid Network has made a deliberate decision not to run any lottery, raffle, sweepstake or prize draw as a fundraising mechanism. This is not a criticism of charities that do — many well-regarded organisations raise significant funds this way responsibly. Our position is that all of these formats involve gambling: participants pay for a chance to win, and that mechanism carries a documented risk of addiction and financial harm, particularly for people already vulnerable. We do not want our fundraising to carry that risk. We prefer a transparent, direct relationship with supporters: you give, the money funds surgery or disaster relief, we report on outcomes. Is buying a charity lottery ticket the same as donating? No. A lottery ticket is a gambling purchase — you are paying for a chance to win a prize. Only 30–45% of your payment typically reaches the charity. A direct donation sends 85–97p per £1 to the cause, qualifies for Gift Aid, and can be Gift Aided to increase its value by 25% at no extra cost to you. For the same spend, a direct donation to World Aid Network funds significantly more treatment than an equivalent amount in lottery tickets. Can charity lotteries cause gambling addiction? For the vast majority of participants, charity lotteries pose little risk. However, gambling addiction is not determined by the legal status or charitable context of the gambling product — it is driven by the repetitive, reward-anticipation cycle common to all forms of gambling. The low ticket price and 'good cause' framing of charity lotteries can lower psychological barriers and make escalating spend feel more acceptable. Problem gamblers have reported that charity lottery participation contributed to or overlapped with their broader gambling harm. If your lottery spending is increasing, hard to control, or funded by money intended for essential costs, that is worth paying attention to. Where can I get help with a gambling problem in the UK? Free confidential support is available 24 hours a day. GamCare operates the National Gambling Helpline on 0808 802 0133 — free, confidential, available around the clock by phone or live chat at gamcare.org.uk. Gamblers Anonymous UK runs peer-support meetings across the country (0330 094 0322 · gamblersanonymous.org.uk). GamStop (gamstop.co.uk) lets you self-exclude from all UK-licensed online gambling sites within 24 hours, for free. Your GP can refer you to NHS-funded cognitive behavioural therapy (CBT) for problem gambling. If you are in crisis, contact Samaritans on 116 123 (free, 24/7). Other ways to support World Aid Network: [Donate Online](/donate)[Legacy Giving](/legacy-giving)[Crypto Donation](/donate-bitcoin)[Emergency Appeal](/appeal)[Cancer Fund](/cancer)[Eye Surgery Fund](/eye-surgery) --- World Aid Network is a UK Charitable Incorporated Organisation (charity registration in progress; application ref 5290505, ICO ref ZC156579).