By Phillip Gerrish, Marketing Services Manager | March 2025 |
Charity lotteries have historically been reliable but arguably underused up until the last 5 to 10 years. In 2025, they're being reimagined - not just as a fundraising tool, but as an engagement, retention and development driver.
This paper explores:
- Why innovation in lotteries is accelerating
- How charities can harness new technology and behavioural insights
- What’s coming next in this evolving space
- How the most successful charities are combining tradition with transformation
Charity lotteries aren’t just a fun and different way to diversify a charity’s fundraising portfolio and raise income. Lotteries are a strategic fundraising product and innovation is the engine driving them forward.
Why Now?
Fundraising Fatigue
With less funding available and increased competition for grants, static donor bases, and the cost-of-living crisis, charities are struggling to grow voluntary income through traditional means.
Digital Transformation
Charities are accelerating digital capabilities across all channels, lotteries included. Players expect online journeys, mobile access, email notifications, and seamless payments.
Shift in Consumer Habits
People want small, affordable, feel-good moments, and weekly lotteries fit perfectly. Subscriptions, online donations, and accessible digital experiences are reshaping giving behaviour.
What Does Innovation Look Like?
Here are the five key innovation pillars defining the next-generation charity lottery:
1. Frictionless Digital Journeys
- Instant online sign-up via mobile, tablet, or desktop
- Secure and quick Direct Debit setup
- Personalised welcome journeys via email
- Online access to a player’s lottery account
Innovation Insight: Based on our insights, conversion rates increase by as much as 40% when an online lottery sign-up process is mobile-optimised.
2. Data-Driven Player Retention
- Real-time dashboards show attrition in action and assist with understanding lifetime value
- Email win notifications and timely reactivation campaigns
- Dynamic player journeys based on behavioural insights
Innovation Insight: One hospice client implemented a player journey and retained 15% more players over 12 months than their control group.
3. Branded, Emotional Experiences
- Lotteries feel like your charity’s story, not a generic product
- Every interaction reinforces cause, purpose, and mission
- Players get updates, impact stories, and “thank you” communications
Innovation Insight: Personalising lottery pages with your impact story could boost acquisition and retention - people want to see the difference their £1 makes.
4. Integrated Marketing
- Lottery sign-ups promoted through charity newsletters, social channels, and cross-sell journeys (particularly raffle)
- Facebook/Instagram ads with tracked sign-up ROI
- Retargeting warm audiences with “Win & Support” messaging
- QR codes on print media driving mobile sign-ups
Innovation Insight: Integrating lottery messaging into supporter newsletters with a clear CTA can boost warm sign-up rates.
5. Product Innovation
- Superdraws with seasonal themes marketed to lottery players
- Upgrade campaigns at key points in the player journey
- Cross-sell campaigns (adding lottery to other content and to the charity’s main website)
Innovation Insight: Superdraws can generate up to 3x normal weekly revenue or more, especially when paired with impact-led storytelling.
Overcoming Barriers
Even with opportunity on the table, many charities hesitate to innovate. Why?
- "We don’t have the staff or time."
Work with a full-service ELM like Sterling to manage compliance, stewardship, and reporting.
- "Our audience is older."
The 60+ demographic is the most loyal lottery base, and they’re increasingly digital.
- "It feels like gambling."
With strong ethical messaging and clear impact stories, lotteries remain one of the most trusted giving formats.
- "We already run a raffle."
Raffles are seasonal. A weekly lottery builds recurring, predictable income with longer supporter lifespans.
Future-Facing: What’s Coming Next?
- Online lottery accounts
Sterling’s mobile-responsive online account system that allows players to check their entries, payments, winnings and personal information.
- Loyalty rewards
Non-cash perks for long-term players (e.g. bonus entries, exclusive content, prize draws).
- AI-led attrition prediction
Smart data modelling from third party data analysis agencies that pinpoints when players may lapse.
- EPOS ticket sales
Allowing supporters to buy ‘lucky dip’ entries in your charity shops, subverting the subscription model, with a digital upsell strategy for ticket purchasers.
- Keep the Change
Synergising donations with lottery, allowing players to round up their monthly payment and give a small additional amount regularly.
Conclusion: Innovate or Stagnate
The charity lottery landscape is evolving rapidly, from paper-based sign-up methods to digital-first, brand-rich experiences that connect supporters with purpose. The charities embracing innovation are already reaping the rewards:
- Higher acquisition rates
- Longer player lifespans
- Lower attrition rates
- Greater unrestricted income
Innovation isn't about flashy tech, instead it's about designing a better supporter journey, built on empathy, insight, and ease.
Next Steps for Forward-Thinking Charities
- Audit your current lottery (or appetite to start one)
- Explore partnership with a leading ELM who can support innovation
- Set bold goals – not just income, but engagement, retention, and reach
- Pilot new ideas like Superdraws, retention communications, brand redesigns
- Think like a supporter and ask what would make you want to play every week?
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About Sterling Lotteries
Sterling Lotteries partners with over 800 charities, providing leading prize-led expertise through responsible, innovative, and engaging weekly lotteries and raffles.
We power seamless player experiences, compliance peace of mind, and support charities running creative campaigns that bring prize-led fundraising to life.
www.sterlinglotteries.co.uk
enquiries@sterlinglotteries.co.uk