How To Start A Lottery


This guide is about starting a lottery

Go here for How To Set Up A Lottery Syndicate

And here if you just want to find the Best Online Syndicates

In This Page:

how to start a lottery

So you want to start your own lottery? It won't be easy but here's some ideas and information on how to get started.

Firstly, Why Do You Want To Start A Lottery?

This is a vital question. Are you fundraising for a group or charity? Or maybe wanting to start a business? Or just want extra income?

The scale of the game you want to create will have a major impact on how you proceed. And the level of support and financing you might need.

Are You Sure It's A Lottery You Want?

If you're fundraising then a raffle (or 'tombola') may be a better solution.

(If extra money is the goal, jump now to Your Own Lottery Business)

A raffle is where you sell numbered tickets, and at a specific time winners are drawn from a container that holds a copy of every numbered ticket sold. It's very different to a lottery because only one ticket can win each prize. And the prizes are often donated by local businesses for a little publicity on the tickets.

How Do You Fund Lottery Prizes?

With a lottery you need to be able to pay all of the prizes, and you don't know until each draw is complete what winners there will be.

There are commonly two ways to cover prize payouts. Either you sell enough tickets to cover all the prizes you may potentially have to pay out, which is how most national and state lottery games work. Or you have an insurance company underwrite the game. This is how the online lotto games tend to work.

Very Serious Legal Bit

Lottery games are heavily regulated all over the world. Generally speaking at the very least you will need a license from your Government to be allowed to run one.

And you absolutely must consult with legal professionals before you do anything. I am not a lawyer, and you do need one. Preferably a firm already experienced with lottery law.

Bear in mind it will likely be extremely difficult to get a license or approval to run a lottery. Why? Because most countries have big national lottery games that make lots of revenue for the Government. And they don't really want any competition.

What Makes Your Lottery Better?

Most countries have a big lottery game. You pay a very small amount, and can win a very big prize.

Your game needs to be better or different in some way. It may simply be that all the profits go to your charity. Or maybe the odds on winning are so much better (even if the prizes are smaller). Whatever it is, you need 'something'!

So What Now?

If running your own lottery game is for you, then I'd suggest your next step would be to contact the relevant Government department. It will normally be called something related gaming and licensing. But if you ask for whichever department handles lottery licensing you should be on your way.

Good luck :-)

Start Your Own Lottery Business

If the idea of running a lottery is more about generating extra cash than owning a lottery company, then I can help you further. This can be for you directly, or for a group you represent or support.

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