The Government is to bring in legislation to ensure that lotteries can only be run for non-profit purposes.
In a written statement to the House of Commons, the Department for Culture, Media and Sport said: "The Government is clear that lotteries will continue to be the preserve of good causes only. There should be no commercial for-profit lotteries.
"The law should provide for a clear and enforceable distinction between lotteries and prize competitions, and the Government intends that the overall bill on gambling which it proposes should achieve that."
The Institute of Fundraising and the Charity Law Association had both called for measures to protect charity lotteries.
The gambling bill will ensure that for-profit companies will only be able to run prize competitions that are "distinguishable from lotteries in that they either require a degree of skill, or that they have a clear and open, free entry route".