Crowdfundings combined with lotteries may require a licence

Crowdfunding is a type of fundraising where companies, associations or private persons via donations aim to raise money for their projects and ideas.  

Crowdfundings, where a donated amount of money equals participation in a lottery, are considered covered by the rules on charity lotteries, depending on the purpose. 

Crowdfundings may be covered by the rules on charity lotteries, because the donation is considered a stake in those situations where you pay more for goods than they are worth. When you donate an amount of money in connection with a crowdfunding and thereby participate in a lottery, the donation is considered a stake. 

A charity lottery requires a licence from the Danish Gambling Authority.  

Short introduction: rules on charity lotteries

In addition to the monopolies (Danske Lotteri Spil, Klasselotteriet, Varelotteriet og Landbrugslotteriet), only associations, institutions, organisations and committees can hold charity lotteries. 

Private individuals and businesses cannot hold charity lotteries. 

A charity lottery requires a licence from the Danish Gambling Authority if: 

• The participants pay a stake to participate (money or similar),
• The chance of winning depends on chance and 
• There is a chance of winning a prize 

The Danish Gambling Authority considers the payment of a donation a stake in a lottery if the payment of a donation grants participation in the lottery. 

In a charity lottery with lottery tickets, the tickets must be physical. 

Notification – no later than 14 days before the lottery is to be held.
Associations and organisations must notify the Danish Gambling Authority of a charity lottery when the total selling price is DKK 20,000 or less. 

Application for licence – no later than four weeks before the lottery is to be held. 
Institutions and committees must always apply for a licence from the Danish Gambling Authority to hold a charity lottery. 
Associations and organisations must apply for a licence from the Danish Gambling Authority to hold a charity lottery when the total selling price is DKK 20,000 or more or at the third notification in the same calendar year. 

You can read more about the rules on charity lotteries on the Danish Gambling Authority’s website under “For businesses and associations” and ”Charity lotteries”. Here, you will also find the Danish Gambling Authority’s guide on charity lotteries and the Executive Order on charity lotteries no. 1288 of 29 November 2019. 

If you, as an organiser, are in doubt as to whether you are holding a charity lottery that requires a licence from the Danish Gambling Authority, you are encouraged to contact the Danish Gambling Authority via the contact form before the lottery is held. 
Write to us via the Danish Gambling Authority's contact form