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Postcode Lottery Group

The Postcode Lottery Group is a Dutch international social enterprise, 100% owned by a non-profit foundation. The group establishes and manages charitable lotteries worldwide to raise funds for social organisations working in areas such as culture, nature, environmental and animal protection, health, human rights, and development aid. The Postcode Lottery Group is reported as the world's third-largest private charity donor, after the Bill & Melinda Gates Foundation and the Wellcome Trust.[1]

The Postcode Lottery Group
Formation1989; 35 years ago (1989)
Founders
TypeSocial enterprise
PurposeHuman rights, nature, biodiversity and environmental protection, development cooperation, equal opportunities, social cohesion, and well-being
HeadquartersAmsterdam, The Netherlands
Area served
Worldwide
Key people
Sigrid van Aken (CEO)
Websitewww.postcodelotterygroup.com
Formerly called
Novamedia

History

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In 1983 Boudewijn Poelmann and his wife Annemiek Hoogenboom founded Novamedia – later[when?] known as Postcode Lottery Group – a Dutch marketing and media company established with the mission of supporting social organisations.[2]

In 1989 Boudewijn Poelmann partnered with Frank Leeman, Herman de Jong, and Simon Jelsma to launch the Dutch Postcode Lottery (Nationale Postcode Loterij)[3] whose mission is to raise funds through the creation and management of lotteries seen as a tool for generating revenue while also engaging the public in charitable giving.

The lottery is based on the concept of using postal codes to determine winning tickets and raise money for charity, through a subscription-based lottery.[4] Since a percentage of the ticket price goes to charities, every player contributes to support social organisations.[5]

The lottery gained popularity in the Netherlands, and Novamedia founded Postcode Lotteries in other European countries, also aimed at raising funds for social organisations. Today, the Postcode Lottery Group operates six lotteries in five countries.[6] In 2023, the Group raised 904 million euros for charity.[7]

The postcode lotteries

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The Postcode Lottery Group launched its first lottery, the Dutch Postcode Lottery (Nationale Postcode Loterij), in 1989. This lottery uses postal codes (zip codes) as ticket numbers and has become one of the largest lotteries in the Netherlands.

For every lottery ticket sold, a part goes to various charitable causes, including environmental conservation, human rights and social welfare;[8] another part goes to the prize pot, a key part of playing a lottery; and the last part goes toward the costs involved in organising the lottery itself.[9]

Following the Dutch subscription-based model, the Postcode Lottery Group set up the People's Postcode Lottery in Great Britain in 2005,[10] followed in that same year with by the Swedish Postcode Lottery (Svenska Postkodlotteriet).[11]

In 2016, the Deutsche Postcode Lotterie was launched in Germany, to raise funds for German charitable organisations. Two years later, in 2018, the Norwegian Postcode Lottery (Norsk Postkodelotteri) was founded.

These lotteries are collectively known as the Postcode Lottery Group. In 2024, the group announced the establishment of the Canadian Postcode Lottery Foundation in Canada.[12]

Operation model

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The Postcode Lottery Group's operating model is as follows:[13]

  1. Use of postcodes: part of what makes the postcode lotteries distinctive is the use of postcodes as ticket numbers to determine winners. This approach relies on publicly available geographic data rather than arbitrary number selection methods.
  2. Subscription-based: Postcode lotteries operate on a subscription-based model, where players sign up for ongoing monthly participation rather than purchasing individual tickets for each draw. This structure fosters long-term engagement and provides a stable revenue stream.
  3. Regulation and oversight: postcode lotteries are subject to regulatory oversight in the countries where they operate, ensuring compliance with local lottery laws and regulations.
  4. Charitable focus: a significant portion of ticket sales revenue is allocated to support a wide range of charitable causes, including social welfare, environmental conservation,[14] healthcare, human rights and education.
  5. Impact reporting: Postcode Lottery Group and every postcode lottery provide regular reporting on the impact of its lotteries, detailing the funds raised and the causes supported.
  6. Community engagement: Postcode lotteries engage with local communities not only through their support for grassroots organisations and community projects but also by organizing festive manners to hand out prizes to winning communities.
  7. Responsible gaming: Postcode Lottery Group upholds standards in its operations to ensure responsible gambling practices according to the principles of fairness, integrity and social responsibility.

Governance

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The boards of Postcode Lottery Group are responsible for overseeing the company's strategic direction and financial management.[15] The boards are:

  • The executive board that is responsible for the Postcode Lottery Group and its affiliated companies. The members are Sigrid van Aken (CEO), Imme Rog (CMO) and Michiel Verboven (CCO).
  • The supervisory board – Novamedia Holding BV – that supervises the policy implemented by the executive board and the general running of Novamedia and its affiliated companies. The board members are G.A. Verbeet (chair), C. van der Pol, D.E. Sauer, E.H. Verkoren; G.J.A.M. van der Vossen and P.A. Zinkweg.
  • The Novamedia Foundation that assures the continuity of Novamedia's mission and the social entrepreneurial spirit. The board members are P.L.B.A. van Geel (chair), D.R. de Breij amd G.P. Prein.

Activities

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Since its inception, the Postcode Lottery Group has raised more than €13.5 billion in support for thousands of charitable initiatives, locally and internationally. According to the Associated Press, in 2023, the group stood among the largest private donors to Ukraine-related matters, contributing 155.2 million euros (165.9 million USD) to humanitarian and human rights organisations also operating in Ukraine or assisting refugees. The Dutch branch donated 100.6 million euros (113.3 million dollars) to organisations involved.[16]

In 2009 the charity lotteries operated by Novamedia produced a turnover of more than €728 million, of which more than €364 million euros was divided among the charities. Since its inception, Novamedia has collected over €4 billion for more than 240 charities for people, nature, culture, health, and welfare.[17]

In 2023 the group raised €904 million (US$1 billion) for charities.[18]

Ambassadors

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In 2001 Nelson Mandela became the first international ambassador of the Postcode Lottery Group. Since then, various personalities around the world have been associated with the group, among whom are:[19]

Awards

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In 2022 the postcode lottery was recognised as the "Top Global Funder You (Probably) Haven't Heard Of" by Inside Philanthropy's Philanthropy Awards (IPPAs).[20]

References

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  1. ^ "World's top 20 Private Charity Donors 2020/21". www.cityam.com.
  2. ^ "Our history".
  3. ^ "Nationale Postcode Loterij" (in Dutch). Oxfam Novib. n.d.
  4. ^ "Lose kaufen, Gewinnchance sichern, Gutes tun!".
  5. ^ https://blog.philanthropy.indianapolis.iu.edu/2019/06/17/the-dutch-charity-lotteries-and-an-innovative-approach-to-change/
  6. ^ Wind, Femmetje de (29 November 2020). "Ceo Postcode Loterij Sigrid van Aken: 'We gaan voor het tweede 10 miljard'". Het Parool (in Dutch). Retrieved 2023-03-02.
  7. ^ "Postcode Lottery Group in 2023: € 2,5 miljard omzet, € 904 miljoen naar goede doelen". 26 April 2024.
  8. ^ Development Co-operation Profiles. Organisation for Economic Co-operation and Development. 3 July 2019. doi:10.1787/2dcf1367-en.
  9. ^ "Numbers | Clinton Global Initiative". YouTube. 21 September 2022.
  10. ^ "All Star Cast to Front People's Postcode Lottery's April Draw Campaign in New Cross-Broadcaster Deal from the7stars".
  11. ^ "Postkodlotteriet".
  12. ^ "Homepage". www.postcodelotteryfoundation.ca.
  13. ^ "About us".
  14. ^ https://www.postcodelotterygroup.com/news/lottery-news/award-recognises-ocean-protection-as-key-to-fighting-climate-change-and-strengthening-biodiversity/
  15. ^ "Organisation & governance".
  16. ^ "List: Some of the largest private donations to Ukraine". apnews.com. Retrieved 17 March 2024.
  17. ^ "Novamedia – Home". Novamedia. Archived from the original on 12 April 2009.
  18. ^ "Novamedia – Annual Report 2023 Postcode Lottery Group – Pagina 18–19".
  19. ^ "Ambassadors". www.postcodelotterygroup.com.
  20. ^ "Philanthropy Awards, 2022 | Inside Philanthropy". www.insidephilanthropy.com. 27 December 2022.
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