⚖ EU Gambling Regulations

Charitable and Non-Profit Gambling Regulation in the EU: Charity Lotteries, Raffles, and Fundraising Events

A comprehensive examination of how European Union member states regulate gambling activities conducted for charitable purposes. This guide covers charity lottery licensing requirements, raffle and tombola exemptions, minimum proceeds-to-charity ratios, tax treatment of charitable gambling, online charity lottery regulations, and country-by-country analysis of non-profit gambling frameworks.

Key Takeaways

Regulatory Approach: Most EU countries provide lighter regulation for charitable gambling compared to commercial operations, with tiered licensing based on scale
Small Lottery Exemptions: Many jurisdictions exempt small-scale raffles and tombolas from full licensing if below monetary thresholds (typically EUR 5,000-40,000)
Proceeds Requirements: Charity lotteries must typically allocate 20-50% of proceeds to the charitable cause, with caps on prizes and administration costs
Tax Treatment: Charitable gambling often receives favorable tax treatment, with reduced or zero lottery duty and VAT exemptions in many EU countries

Understanding Charitable Gambling in the EU Context

Charitable gambling occupies a distinctive regulatory space within European Union member states. Unlike commercial gambling operations subject to comprehensive licensing frameworks and substantial taxation, non-profit gambling activities conducted for charitable purposes typically benefit from lighter regulatory treatment. This reflects the social value of fundraising for good causes while still maintaining necessary consumer protections.

According to the European Commission, gambling regulation remains primarily a matter for individual member states, and this includes charitable gambling. There is no harmonized EU framework specifically governing charity lotteries, meaning requirements vary significantly across jurisdictions. The European Lotteries Association represents both state and charity lottery operators and provides resources on responsible lottery operations across Europe.

Types of Charitable Gambling Activities

Charitable gambling in the EU encompasses several distinct activity types, each with different regulatory treatment:

Common Charitable Gambling Formats

  • Charity Lotteries (Society Lotteries): Larger-scale operations with ongoing ticket sales, multiple draws, and cash prizes, typically requiring formal licensing
  • Raffles and Tombolas: Small-scale events where tickets are sold and drawn at a single occasion, often with goods rather than cash as prizes
  • Charity Bingo: Bingo games organized by non-profits, subject to specific bingo regulations in most jurisdictions
  • Fundraising Casino Nights: Simulated casino events for entertainment purposes, with proceeds benefiting charity
  • Prize Draws and Competitions: Promotional draws that may or may not constitute gambling depending on entry requirements
  • Good Causes Lotteries: Ongoing lottery operations where proceeds support multiple charities or community projects

The regulatory classification often depends on factors including prize value, whether prizes are cash or goods, ticket price, duration of ticket sales, and the total proceeds generated. Understanding these distinctions is essential for charities planning fundraising activities.

EU Legal Framework and National Competence

No Harmonized EU Charitable Gambling Rules

As explained in our guide to EU Gambling Laws, there is no single European gambling license or unified regulatory framework. This extends to charitable gambling, where each member state maintains its own rules regarding licensing requirements, proceeds allocation, permitted activities, and tax treatment.

The EUR-Lex database of EU law confirms that gambling regulation, including charitable gambling, falls within member state competence. The EU's primary involvement relates to ensuring that national rules comply with fundamental treaty principles regarding the free movement of services, though member states retain broad discretion to restrict gambling for public interest reasons including consumer protection and the prevention of gambling-related harm.

CJEU Case Law on Charitable Gambling

The Court of Justice of the European Union (CJEU) has addressed charitable gambling in several cases examining whether national restrictions on cross-border lottery operations are compatible with EU law. Key principles established include:

These principles mean that charities considering cross-border lottery operations in the EU face significant legal complexity, as detailed in our guide to Cross-Border Online Gambling.

Country-by-Country Analysis

Germany: State-Level Charitable Gambling Regulation

Germany's gambling framework, overseen by the Gemeinsame Glucksspielbehorde der Lander (GGL), includes specific provisions for charitable lotteries at the state (Lander) level. Our comprehensive Germany country guide provides the broader regulatory context.

Key German Charitable Gambling Rules:

Netherlands: KSA Oversight of Charitable Lotteries

The Kansspelautoriteit (KSA) regulates charitable gambling in the Netherlands. The country has a strong tradition of charity lotteries, with major operators like the Nationale Postcode Loterij distributing significant funds to good causes. See our Netherlands country guide.

Key Dutch Charitable Gambling Rules:

Spain: DGOJ and Autonomous Community Regulation

Spain's Direccion General de Ordenacion del Juego (DGOJ) oversees national lottery regulation, while autonomous communities regulate many local charitable gambling activities. Our Spain country guide provides comprehensive details.

Key Spanish Charitable Gambling Rules:

France: ANJ Authorization for Society Lotteries

France's Autorite nationale des jeux (ANJ) regulates charity lotteries alongside its broader gambling oversight role. Our France country guide explains the regulatory framework.

Key French Charitable Gambling Rules:

Italy: ADM Framework for Charitable Gaming

Italy's Agenzia delle Dogane e dei Monopoli (ADM) regulates all gambling including charitable activities. State lotteries in Italy direct significant proceeds to cultural and social causes. See our Italy country guide.

Key Italian Charitable Gambling Rules:

Belgium: Gaming Commission Oversight

Belgium's Gaming Commission maintains strict gambling regulations, including for charitable activities. The 2023 advertising ban applies to all gambling promotion including charity lotteries.

Key Belgian Charitable Gambling Rules:

Nordic Countries: State Monopoly Context

In countries with state gambling monopolies like Finland (Veikkaus) and Sweden (prior to re-regulation), charitable gambling operates within or alongside these monopolistic frameworks.

Finland: Veikkaus monopoly directs lottery proceeds to sports, arts, science, and youth work. Charitable raffles at local events may be permitted under exemptions.

Sweden: Post-re-regulation, Spelinspektionen licenses charity lotteries separately from commercial operations. Society lotteries benefit from specific provisions allowing charitable organizations to raise funds through regulated lottery activities.

Licensing Requirements and Exemptions

Tiered Licensing Approaches

Most EU countries employ tiered approaches to charitable gambling licensing, with requirements scaling based on the size and nature of operations:

Tier Typical Threshold Requirements Examples
Exempt/Notification Only Under EUR 5,000-10,000 per event No license; may require simple notification to local authorities Small tombolas at local fetes, school raffles
Simplified Registration EUR 10,000-40,000 per event Registration with local/regional authority; basic reporting Charity raffles at larger events, club lotteries
Local Authority License EUR 40,000-100,000 annually Formal application; charitable status verification; basic auditing Small society lotteries, ongoing fundraising draws
National Regulator License Over EUR 100,000 annually Full licensing similar to commercial operators; comprehensive compliance Major charity lotteries, national good causes operators

Common Exemption Conditions

Where exemptions apply, they typically require that:

Application Requirements for Licensed Charity Lotteries

Where formal licensing is required, charity lottery applicants typically must provide:

For comparison with commercial licensing requirements, see our guide to the Gambling License Application Process in the EU.

Proceeds Allocation and Financial Requirements

Minimum Charitable Proceeds Requirements

EU countries typically mandate that a minimum percentage of charity lottery proceeds actually reach the charitable purpose. This ensures that charitable gambling genuinely benefits good causes rather than primarily enriching organizers or prize winners.

Typical Proceeds Allocation Structure

  • Charitable Purpose: 20-50% minimum, often higher in practice
  • Prizes: Maximum 50-60% of proceeds in most jurisdictions
  • Operating Costs: Capped at 10-30%, including administration, marketing, and ticket production
  • Lottery Duty/Tax: Variable; often reduced or exempt for charitable lotteries

According to European Gaming and Betting Association (EGBA) research, properly regulated charity lotteries can be effective fundraising mechanisms when proceeds requirements are meaningfully enforced.

Financial Reporting and Auditing

Licensed charity lotteries must typically submit financial reports demonstrating compliance with proceeds requirements. This may include:

These requirements parallel the compliance audit obligations facing commercial gambling operators, though typically with less intensive oversight.

Tax Treatment of Charitable Gambling

Lottery Duty Exemptions and Reductions

Many EU countries provide favorable tax treatment for charitable gambling, recognizing its social benefit. Common approaches include:

For context on commercial gambling taxation, see our guide to Gambling Operator Taxation in the EU.

Winner Tax Implications

The tax treatment of charity lottery winnings for players follows general gambling winnings rules in most countries. As explained in our Player Winnings Tax Calculator, many EU countries do not tax recreational gambling winnings, though significant prizes may trigger tax obligations in some jurisdictions.

Online Charity Lotteries

Digital Transformation of Charitable Fundraising

The growth of online gambling has extended to charitable lotteries, with many charities seeking to offer digital ticket sales. However, online charity lotteries face the same regulatory complexity as commercial online gambling.

Key considerations for online charity lotteries include:

Partnership Models

Many charities address online lottery complexity through partnerships with licensed operators:

Consumer Protection in Charitable Gambling

Responsible Gambling Requirements

While charitable gambling typically operates under lighter regulation, consumer protection remains important. Charities should implement:

Our guide to Problem Gambling Statistics and Prevention provides context on why these measures matter even for charitable gambling.

Advertising and Promotion

Charity lottery advertising must typically comply with general gambling advertising rules, though some countries provide more flexibility for charitable promotions. Key requirements may include:

See our comprehensive guide to Gambling Advertising Bans and Restrictions in the EU for detailed country requirements.

Compliance Considerations for Charities

Best Practices for Charitable Gambling Operations

Charities planning gambling-based fundraising should consider:

Risk Areas to Avoid

Charities should be aware of regulatory risks including:

Frequently Asked Questions

Do charities need a gambling license to run a lottery in the EU?

It depends on the country and the scale of the lottery. Most EU member states provide exemptions or simplified licensing for small-scale charitable lotteries below certain thresholds. For example, in Germany, small lotteries under EUR 40,000 may only require notification to local authorities, while larger charity lotteries need full licenses from state gambling authorities. In the Netherlands, lotteries with prizes not exceeding EUR 4,500 per event may qualify for simplified registration. Similar tiered approaches exist in Spain, Italy, and other EU countries, where the proceeds threshold and whether prizes are cash or goods determine licensing requirements. Charities planning lottery activities should verify the specific requirements in each jurisdiction where they intend to sell tickets.

What percentage of charity lottery proceeds must go to good causes in the EU?

Most EU countries require that a minimum percentage of charity lottery proceeds go to the charitable purpose, typically ranging from 20% to 50% depending on jurisdiction. In Germany, at least 25% of proceeds from charitable lotteries must benefit the stated cause. Spain requires similar minimum allocations for authorized charitable draws. Belgium and the Netherlands have strict requirements ensuring the majority of funds reach intended beneficiaries. Some countries like Italy allow state-run lotteries to direct proceeds to specific cultural or social causes with defined allocation percentages. Prize costs, administration, and operating expenses are typically capped to ensure meaningful charitable benefit. Licensed charities must usually submit financial reports demonstrating compliance with these requirements.

Are online charity lotteries legal in the EU?

Online charity lotteries operate in a complex regulatory environment across the EU. Some countries like Malta have permitted licensed online charity lotteries, while others restrict charitable gambling to offline formats only. Germany's Interstate Treaty allows online lotteries but with strict requirements. France permits certain society lotteries online with ANJ authorization. Many charities address this complexity by partnering with national lottery operators or using licensed white-label platforms to offer online participation legally. Cross-border online charity lotteries face additional scrutiny under EU gambling law principles, and charities must ensure compliance with each target country's regulations. Simply operating an online lottery from one EU country does not automatically permit selling tickets in other member states.

What is the difference between a charity lottery and a raffle in EU law?

In most EU jurisdictions, the distinction relates to scale, prize type, and timing. Raffles (tombolas) are typically small-scale events where tickets are sold and drawn at a single occasion, often with non-cash prizes like goods or vouchers, and may be exempt from licensing requirements. Charity lotteries are larger, ongoing operations with cash prizes, multiple draws, and wider ticket distribution requiring formal licensing. Germany distinguishes between Tombola (instant raffles at events) and Lotterie (larger organized lotteries). Spain differentiates between rifas (small raffles) and loterias beneficas (charity lotteries). The prize value threshold, whether prizes are cash or goods, and the duration of ticket sales typically determine which regulatory category applies and what authorization is required.

Can EU charities run cross-border lottery operations?

Cross-border charity lottery operations in the EU face significant legal complexity. While EU law provides for the free movement of services, member states retain broad authority to regulate gambling within their territories. A charity licensed to operate a lottery in one EU country cannot automatically sell tickets in other member states without complying with each country's gambling laws. Many countries require specific licensing for any lottery ticket sales within their jurisdiction, regardless of where the operator is based. The CJEU has upheld member states' rights to restrict cross-border gambling where justified by legitimate public interest objectives, provided restrictions are proportionate and non-discriminatory. Charities considering multi-country operations should seek legal advice and may need to obtain authorization in each target country.

Legal Disclaimer

This article provides general information for educational and research purposes only. It does not constitute legal advice regarding charitable gambling operations. Gambling regulations, including rules for charity lotteries, vary by jurisdiction and change over time. Charities and non-profit organizations planning lottery or raffle activities should consult with qualified legal counsel familiar with gambling law in their specific jurisdiction before proceeding.

Resources and Further Reading

For additional information on charitable gambling and lottery regulation:

Related Resources

Last Updated: January 2026