How to get a lottery licence? Complete Guide 2026

Have you ever wondered how to get a lottery licence for your online gaming venture? This comprehensive guide walks you through everything you need to know about lottery licensing – from different jurisdiction options to step-by-step application process.

Understanding the Lottery Licensing Landscape

The path to legally operating an online lottery business might seem daunting, but understanding the licensing landscape is your foundation for building a thriving, compliant operation. Whether you’re planning a community raffle or a full-scale international lottery platform, navigating regulatory requirements is essential – not just for legal compliance, but for building trust with players and accessing crucial banking partnerships.

Every day, entrepreneurs worldwide face the critical question of how to obtain proper lottery licensing. This guide explores different jurisdiction options, compares popular licences like Anjouan, Tobique, and Curacao lottery licence, discusses which lotteries you can run without a licence, examines consequences of illegal operation, and provides a step-by-step roadmap to obtaining your lottery licence legally and efficiently.

What Types of Lottery Licences Are Available in 2026?

Understanding lottery licence types is crucial when determining how to get a lottery licence that suits your needs. Lottery licences fall into two main categories: local (national) and international (offshore) licences, each serving different purposes.

Local or National Lottery Licences

Local or national lottery licences are issued by individual countries or states, allowing operation only within that specific jurisdiction. The UK Gambling Commission, for example, issues licences for large society lotteries exceeding £20,000 per draw or £250,000 annually. These offer high credibility but come with stringent requirements, lengthy processes, and higher costs – UK applications start at £370 with annual fees scaling by revenue.

International or Offshore Lottery Licences

International or offshore lottery licences provide broader flexibility, allowing you to target multiple markets from one jurisdiction. Popular offshore jurisdictions include Anjouan, Curacao, and Tobique. These attract startups due to lower costs ($10,000-€50,000 annually), faster processing (4-16 weeks), and straightforward procedures.

B2C vs. B2B Lottery Licences

B2C (Business-to-Consumer) licences are for operators offering lottery services directly to players. These require compliance with player protection standards, responsible gaming measures, and anti-money laundering protocols. B2B (Business-to-Business) licences serve companies providing services to lottery operators – software developers, platform providers, payment processors. B2B licences focus on technical integrity rather than direct player protection.

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Do I Need a Licence to Run a Raffle or Small Lottery?

Not every lottery requires a full gambling licence. Understanding these exceptions can save significant time and money. The question “do I need a licence to run a raffle” depends on scale, purpose, and structure.

Incidental Non-Commercial Lotteries

For example, incidental non-commercial lotteries in the UK require no licence. These are raffles at non-commercial events like school fêtes or charity fundraisers. All ticket sales and draws must occur during the event. Promoters cannot deduct more than £100 in expenses, prizes cannot exceed £500 (unless donated), and no rollovers are permitted.

Small Society Lotteries

Small society lotteries require local authority registration, not a full Gambling Commission licence. These are run by non-profit organizations, charities, or sports clubs for non-commercial purposes. They must raise under £20,000 per draw or £250,000 annually. Registration costs around £40 initially, £20 annually. Tickets must not exceed £2, and at least 20% of proceeds must support the society’s purposes.

What Are the Most Popular Licences for Online Lotteries?

When exploring how to get a gambling licence for online lottery operations, three jurisdictions dominate: Anjouan, Tobique, and Curacao. Each offers unique advantages for different business types.

The Anjouan Gambling Licence

The Anjouan gambling licence has gained popularity among startups and crypto-focused platforms. Located in the Comoros Islands, Anjouan offers approvals within 4-6 weeks with 0% tax on gross gaming revenue. Annual fees start at €17,828, significantly lower than European jurisdictions. The licence covers all gambling activities including lotteries, raffles, and bingo under one permit.

The Tobique Gambling Licence

The Tobique gambling licence from New Brunswick, Canada, represents one of the newest options. Established in 2023, Tobique offers 0% GGR tax and zero corporate income tax, with annual fees around $10,000. Processing averages 4-6 weeks, and the regulator permits cryptocurrency operations. Partnerships with major providers like BetConstruct have rapidly built credibility.

The Curacao Gambling Licence

The Curacao gambling licence has regulated online gambling since 1996. Under the 2025 LOK framework, B2C operator licences cost €47,000 annually, B2B licences €24,000. Curacao offers 2% corporate tax, no VAT, and no gambling revenue duties. Despite higher costs than Anjouan or Tobique, Curacao’s 29-year track record provides unmatched industry recognition.

How Do These Popular Lottery Licences Compare?

Understanding the differences between these three popular jurisdictions is essential for making an informed decision about how to get a lottery licence that aligns with your business goals.

Which Jurisdiction Should You Choose?

Choose Anjouan if you’re a startup or small operator prioritizing cost efficiency and speed to market. The combination of the lowest annual fees, fastest processing times, and zero taxation makes it ideal for testing your lottery concept before scaling.

Choose Tobique if you want the benefits of a Canadian licence with offshore-style flexibility. Tobique offers similar cost advantages to Anjouan but with the added credibility of being a Canadian jurisdiction.

Choose Curacao if your priority is established reputation and long-term credibility. Despite higher costs, Curacao’s 29-year track record in online gambling regulation provides unmatched industry recognition.

What Are the Consequences of Operating Without a Valid Lottery Licence?

Operating without proper licensing risks severe penalties including criminal prosecution, asset forfeiture, and permanent industry bans. Understanding why learning how to get a gambling licence legally is non-negotiable requires examining these consequences.

Criminal Penalties in the United States

In the United States, 18 U.S. Code § 1955 makes operating an illegal gambling business a felony. If five or more people conduct a gambling business (including lotteries) operating over 30 days or generating $2,000+ daily, conviction can result in up to five years in federal prison and fines up to $250,000 for individuals or $500,000 for organizations. All property including money, equipment, and proceeds faces seizure.

Criminal Penalties in the United Kingdom

In the United Kingdom, promoting lotteries without proper licensing is a criminal offence under the Gambling Act 2005. Penalties include unlimited fines, imprisonment, and forfeiture of proceeds and equipment. The UK Gambling Commission actively prosecutes illegal operations.

“Beyond immediate legal consequences, reputational damage can permanently destroy business prospects. Payment processors, banks, software suppliers, and affiliates blacklist operators caught running illegal operations.”

— iGaming Legal Expert

Additional Consequences Beyond Legal Penalties

Financial institutions universally refuse to work with unlicensed operators due to anti-money laundering regulations. Players won’t trust unlicensed platforms, knowing they have no regulatory recourse if winnings aren’t paid. The permanent industry blacklisting means you cannot legitimately enter the gambling industry in the future, even with proper licensing.

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How to Get a Lottery Licence: Step-by-Step Process

Now let’s explore the practical process of how to get a lottery licence. While specific requirements vary, fundamental steps remain consistent across licensing authorities.

Step 1: Choose Your Jurisdiction and Licence Type

Research potential jurisdictions considering cost, processing time, reputation, tax implications, and target markets. For European markets, consider Malta or UK despite higher costs. For global operations with lower capital, explore Anjouan, Tobique, or Curacao. Determine whether you need B2C (operating your platform) or B2B (providing services to operators) licensing.

Step 2: Establish Your Corporate Structure

Incorporate a legal entity before applying. Most offshore jurisdictions don’t require incorporation in that specific location – establish your company in tax-friendly jurisdictions like Malta or Cyprus. However, Curacao now requires local entities. Prepare corporate documentation including articles of incorporation, shareholder agreements, and organizational charts identifying all beneficial owners.

Step 3: Prepare Required Documentation

Gather comprehensive documentation including personal identification (passports, proof of address) for all shareholders and directors, corporate documents (incorporation certificate, articles of association), financial documentation (6-month bank statements, funding proof, 3-year projections), business plan detailing operations and strategy, technical documentation (platform description, RNG certification, security measures), and compliance policies (AML/CFT procedures, responsible gaming, privacy policy, terms and conditions).

Step 4: Obtain RNG Certification and Technical Testing

Engage an accredited testing laboratory (eCOGRA, GLI, iTech Labs, BMM Testlabs) to certify your random number generator meets international standards. Certification costs $5,000-$15,000 depending on complexity. Most authorities require valid RNG certification before approval.

Step 5: Submit Your Application and Pay Fees

Complete official application forms through online portals and submit all documentation. Pay required application fees (non-refundable): Anjouan/Tobique $10,000-€18,000; UK £370+ scaling by revenue. Ensure accuracy – errors delay processing or cause rejection.

Step 6: Undergo Regulatory Review and Due Diligence

Authorities conduct extensive due diligence including background checks, funding verification, technical system assessment, and compliance policy review. Processing takes 4-6 weeks (Anjouan/Tobique), 2-3 months (Kahnawake), or 8-16 weeks (Curacao). Respond promptly to regulator requests.

Step 7: Receive Your Licence and Begin Operations

Upon approval, receive your licence certificate and number. Set up operational systems including payment processing, player verification, responsible gaming tools, and customer support. Display licence information prominently on your lottery platform. Remember licensing is ongoing – pay annual renewals, submit compliance reports, and maintain approved policies.

Does WhiteLotto Help with Obtaining Lottery Licences?

When considering how to get a lottery licence, understanding support from platform providers like WhiteLotto can significantly impact your journey. Assistance level depends on your chosen business model: lottery turnkey solution or lotto white label option.

Turnkey Solution Approach

With a lottery turnkey solution from WhiteLotto, you obtain your lottery licence independently. The turnkey model provides complete software and platform infrastructure with full ownership and operational control. You’re responsible for navigating the entire licensing process – choosing jurisdiction, submitting applications, maintaining compliance. While WhiteLotto doesn’t directly assist with licensing, the platform meets technical requirements of major licensing authorities.

White Label Sublicensing Framework

With WhiteLotto’s lottery white label solution, licensing changes dramatically. WhiteLotto can offer a sublicensing framework where permitted by law. You operate under WhiteLotto’s existing licence rather than obtaining your own. Advantages include immediate market entry without months-long approval waits, reduced upfront costs by eliminating application fees, simplified compliance since WhiteLotto handles regulatory reporting, and access to established payment processor relationships.

How Much Does It Cost to Get a Gambling Licence in the UK?

The question of how much does it cost to get a gambling licence in the UK deserves attention, as the UK Gambling Commission operates one of the most rigorous licensing systems globally. UK licences are priced on a sliding scale based on Gross Gambling Yield (GGY).

Initial Application Fees

The initial application fee starts at £370 for small operators (under £1.5 million GGY). For higher revenue projections, fees scale upward: £938 for GGY below £1.5 million, rising to £7,030 for £1 billion+ projections. These non-refundable fees apply even if your application is rejected.

Annual Licence Fees

Annual licence fees follow similar scaling. For GGY below £1.5 million, annual fees are £2,406. As revenue grows: £29,091 annually for £5-10 million GGY, while top bracket (£1 billion+ GGR) face £907,832 plus £150,000 per additional £500 million.

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What Are Common Mistakes When Applying for a Lottery Licence?

Even experienced entrepreneurs make critical errors when learning how to get a lottery licence, potentially costing thousands in rejected applications and months of delays.

Incomplete or Poorly Organized Documentation

The most frequent mistake involves incomplete or poorly organized documentation. Applicants often submit documents piecemeal, fail to have them properly certified, or provide outdated information. Create a detailed checklist of every required document, gather everything before starting, and have a legal professional review your complete package before submission.

Unclear Beneficial Ownership Structures

Another critical error involves unclear beneficial ownership structures. Regulators demand absolute transparency about who ultimately owns and controls your lottery business. Keep structures simple – ideally one operating company with direct individual shareholders.

Inadequate Template-Based Compliance Policies

Many applicants submit inadequate template-based compliance policies downloaded from the internet. Your AML/CFT procedures and responsible gaming policies must be specifically tailored to your operations, not generic templates.

How to Maintain Your Lottery Licence After Approval?

Securing your lottery licence is just the beginning. Many operators mistakenly believe once approved, they can operate without ongoing compliance attention. This leads to licence suspensions, fines, and revocations.

Annual Reporting Requirements

Annual reporting requirements vary by jurisdiction but typically include audited financial statements detailing lottery revenue, player payouts, and operational expenses. You’ll also submit operational reports covering player complaints, responsible gaming interventions, suspicious transactions, and technical changes.

Periodic Compliance Audits

Expect periodic compliance audits conducted by your licensing authority – scheduled or surprise inspections. Auditors examine player verification procedures, random number generator functioning, financial controls, player fund segregation, responsible gaming tools, and complaint handling.

Ongoing AML/KYC Obligations

Your ongoing AML/KYC obligations require constant vigilance. Anti-money laundering regulations evolve continuously with new sanctions lists and regulatory expectations. Maintain updated player verification systems identifying politically exposed persons and detecting unusual betting patterns.

Timely Renewal Fee Payment

Timely renewal fee payment is critical. Unlike many business licences, gambling licences mandate payment by specific dates with automatic revocation if missed – no grace periods. Set automated payments or maintain multiple reminders starting 60 days before renewal dates.

What Are Alternative Licensing Options Beyond the Popular Three?

While Anjouan, Tobique, and Curacao dominate discussions about how to get a lottery licence, several other jurisdictions offer compelling advantages for specific operational models and target markets.

The Gibraltar Gambling Licence

The Gibraltar gambling licence represents premium European licensing with credibility rivalling Malta. Application fees start around £100,000, annual fees begin around £85,000, and processing takes 6-12 months. Gibraltar’s 0% GGR tax rate and 10% corporate tax make it viable for established operators targeting European markets needing unquestionable regulatory credibility.

The Malta Gaming Authority Licence

The Malta Gaming Authority licence remains the gold standard for EU market access. The MGA’s standout feature is EU passporting rights – once licensed in Malta, you can potentially operate in other European Economic Area countries without additional licences. Malta licensing costs approximately €25,000 in application fees plus €20,000-€35,000 annual supervision fees.

The Kahnawake Gaming Commission Licence

The Kahnawake Gaming Commission licence from Canada’s Mohawk Territory has regulated online gambling since 1999. Application fees are $40,000 with $10,000 annual renewals, processing takes 4-6 months. Kahnawake’s 25+ year track record provides credibility newer jurisdictions lack.

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Frequently Asked Questions About Lottery Licensing

How Long Does a Lottery Licence Remain Valid?

Licence validity periods vary dramatically by jurisdiction. Some offshore jurisdictions like Curacao now issue licences with indefinite terms under the new LOK framework, meaning they remain valid as long as you pay annual fees and maintain compliance. Most jurisdictions issue licences for fixed periods: the UK issues licences that remain valid as long as annual fees are paid, Malta issues licences for 10-year periods with annual fees due throughout, and Anjouan typically issues licences for one-year periods requiring annual renewal.

Can I Operate in Multiple Countries with One Licence?

This depends entirely on your licence jurisdiction and the countries where you want to operate. International licences like Anjouan, Curacao, and Tobique allow you to target players in multiple countries, but you’re typically prohibited from specific jurisdictions (usually including the US, UK, France, Australia, and Netherlands). Local licences like UK, Malta, or US state licences only permit operation in their specific jurisdiction.

What Happens If My Licence Application Is Rejected?

Application rejection is disappointing but not necessarily the end of your licensing journey. First, understand that application fees are almost universally non-refundable, so you’ll lose the money you paid to apply. The licensing authority should provide reasons for rejection. You typically have the right to address these concerns and reapply, though you’ll pay application fees again.

Do I Need Separate Licences for Different Lottery Types?

Generally, no – most modern gambling licences cover all forms of lottery operations under a single permit. Whether you’re offering traditional draw-based lotteries, instant win games, raffles, or keno, your lottery licence covers these activities. The comprehensive licences from Anjouan, Curacao, and Tobique explicitly cover all lottery game types without requiring separate permissions.

What Are the Most Common Reasons for Licence Revocation?

The most common reason is failure to pay annual fees on time – this is the simplest requirement but causes surprising numbers of revocations because it’s typically automatic with no grace period. Inadequate anti-money laundering controls represent another frequent cause. Non-payment of player winnings triggers immediate regulatory action in most jurisdictions. Operating in prohibited jurisdictions without proper licensing also causes revocations.

Can I Transfer My Lottery Licence to Another Person or Company?

Lottery licences are generally non-transferable in the sense that you cannot simply sell your licence to another party like you might sell a physical asset. However, the underlying business holding the licence can typically be sold through ownership transfer, though this requires regulatory approval. The licensing authority will conduct full due diligence on the new owners exactly as they did for you originally.

Conclusion: Your Path to Licensed Lottery Operations

Navigating the question of how to get a lottery licence requires careful consideration of multiple factors including your budget, target markets, timeline, and long-term business goals. Whether you’re planning to apply for a raffle lottery licence for small community fundraising or seeking a comprehensive international gambling licence for a major online lottery platform, understanding the regulatory landscape is your foundation for success.

The three most popular jurisdictions for online lottery licensing – Anjouan, Tobique, and Curacao – each offer compelling advantages for different operator profiles. Startups and cryptocurrency-focused platforms gravitate toward Anjouan’s combination of lowest costs and fastest processing. Operators seeking North American regulatory credibility with offshore-style flexibility favour Tobique’s emerging framework. Those prioritizing established reputation and long-term industry relationships choose Curacao despite higher costs.

Remember that operating without proper licensing carries severe consequences including criminal prosecution, substantial fines, asset forfeiture, and permanent industry blacklisting. The investment in proper licensing isn’t just about legal compliance – it’s about building a sustainable, credible business that players trust and service providers support.

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Wojciech Lysak

Wojciech Lysak is Managing Director of White Lotto and a senior iGaming B2B expert with nearly 20 years of experience. He specializes in white label online lottery platforms, turnkey solutions, gaming systems, and scalable B2B solutions for operators across global markets.

A recognized industry leader and visionary, he actively participates in major iGaming events worldwide and has led the creation of multiple successful platforms and projects across the gaming sector.

If you’re interested in starting your own online business in the iGaming sector, Wojciech will help you take your first steps on the path to success.