Organisation & governance
It is Novamedia’s ambition to be – with the lotteries – a loyal financer that provides long-term support for charities. Moreover, we would like to generate more income every year so that we can support even more social initiatives with our Charity Lotteries.
Why setting up new lotteries isn't easy
Novamedia is constantly in dialogue with local charities, authorities and other interested parties in various countries with the aim of setting up a postcode lottery to raise funds for charities.
But this isn’t easy: countries protect their National Lottery because of the high earnings they generate for the public treasury. Most countries only issue a limited number of permits, and stringent and restrictive requirements are set for organisations wanting to be eligible for a permit.
In twenty EU countries, there is only a single national lottery; only in the Netherlands, Ireland, the United Kingdom, Denmark, Germany, Sweden, Norway and Spain do other charity lotteries exist aside from the National lottery, where the permit has been issued to non-profit organisations or charitable organisations. Permits with many restrictions in legislation and regulations directed at preventing competition with the local Nationale Lottery.
Novamedia finances the (high) investments needed to market the lotteries in those countries where a permit has been obtained. Experiences with Sweden and Great Britain have shown that investments of tens of millions of euros are needed to set up a successful charity lottery (the total investments were €28 million in Sweden and €61 million in Great Britain).
In 2018 a license was granted in Norway, enabling to start a Postcode Lottery there. At least 50 per cent of the proceeds will go to SOS Children’s Villages and the WWF, after deducting prizes. The license is granted for nine years with a limit of 125,000 subscriptions.
In Germany at the end of 2015, permit was granted to the non-profit organisation Postcode Lotterie, which was established by Novamedia. The German lottery can only raise funds in accordance with strict conditions. A minimum of 30% of the funds raised are earmarked for local charities, and there is a high lottery tax level.
In Germany, Novamedia had already secured a permit in a number of federal states in 2000 together with German charities. At the time the Postcode Lottery was launched, a new law came into force making it impossible to actually get off the ground. The entire investment of 5 million guilders was lost then.