Editorial note: this guide is general information about how bingo, competitions, lotteries and gambling work in the UK. It is not advice, and it does not describe any specific promotion offered by Fortune Games. Rules, prices and regulations can change, so always check the operator’s current terms.
How does the Postcode Lottery work?
The People’s Postcode Lottery is a subscription lottery where your postcode is your ticket. You pay a fixed monthly subscription, and if your postcode is drawn you share the prize with neighbours who also play. It is a society lottery, which means a guaranteed minimum share of every ticket — at least 30% — goes to charity, and it is regulated by the Gambling Commission like other lotteries.
Playing by postcode
Instead of choosing numbers, you sign up by Direct Debit or card and are entered into draws automatically each month while your subscription is active. Winning postcodes are picked by a certified random process, and because prizes are tied to a postcode, several neighbours can win together when an area comes up. There are daily, weekly and monthly draws with different prize levels, and players can usually hold more than one ticket. Winnings are paid into your bank account, and the prize is tax-free like other UK lottery wins.
A society lottery for good causes
The Postcode Lottery is run as a series of society lotteries promoted by charitable trusts and managed by an external lottery manager. By law a society lottery must give a minimum proportion of proceeds to good causes; here that floor is at least 30% of each ticket, and in practice it has recently been around a third, with the rest covering prizes and running costs. Players have raised well over a billion pounds for charities this way. It is a legitimate, regulated product — just one with a charity-first model rather than a single big jackpot.
Frequently asked questions
How do you play the Postcode Lottery?
You take out a monthly subscription and your postcode becomes your ticket. You are entered automatically into draws while subscribed, and if your postcode is drawn you share the prize with neighbours who also play.
How much goes to charity?
At least 30% of every ticket goes to good causes, as required for a society lottery. In practice it has recently been around a third, with the remainder covering prizes and running costs.
Is the Postcode Lottery legitimate?
Yes. It is a society lottery regulated by the Gambling Commission, run by charitable trusts through an external lottery manager, and has raised over a billion pounds for charities.
Are Postcode Lottery winnings taxed?
No. Like other UK lottery prizes, winnings are tax-free when you receive them. Any interest the money later earns is taxable in the normal way.
Related guides: What is a society lottery? · How does the lottery work? · Where does lottery money go?
18+ only. Gambling should be fun, never a way to make money. Please play responsibly and only with money you can afford to lose. If gambling is affecting you or someone you know, free, confidential support is available 24/7 from the National Gambling Helpline on 0808 8020 133, run by GamCare. You can also visit BeGambleAware (begambleaware.org) or self-exclude from UK-licensed online operators through GAMSTOP (gamstop.co.uk).