The People’s Postcode Lottery has increased the amount of money it gives to good causes to 25 per cent of each £2 ticket sold.
The lottery said it was making the change because of a record 61 per cent increase in ticket sales last year.
The lottery involves people paying for their postcodes to be entered into regular lotteries. When someone's postcode is selected, everyone with tickets in that postcode win a prize.
In 2013, the lottery gave £10m to good causes, which equated to almost 22.5 per cent of all tickets sold.
Money for good causes is distributed to charities and community projects through seven grant-making trusts. These include the People’s Postcode Trust, the Postcode Care Trust, the Postcode Culture Trust, the Postcode Green Trust and the Postcode Animal Trust.
Jo Bucci, the lottery’s managing director, said she had ambitious plans to increase the proportion of ticket sales going to good causes even further, although she would not yet put a figure on it.
The People’s Postcode Lotteries in Sweden and the Netherlands, which are run by the same charity lottery company, Novamedia BV, give 34 per cent and 50 per cent respectively to good causes.
"Sweden is probably the best benchmark for the UK because it was launched giving 20 per cent to good causes like us," said Bucci. "But it has been able to grow that faster because they don’t have the same restrictions on lotteries."
The People’s Postcode Lottery is among a number of charity lotteries that would like a relaxation on the legal limit on turnover, which is £10m a year for any organisation, including no more than £4m for a single lottery, and for the £400,000 cap on prize money to be increased.
Bucci said she expected ticket sales would continue to grow, but said they would plateau at some point because of the limit on prize money.
Clara Govier, head of charities at the People’s Postcode Lottery, said: "The frustrating part for me, as someone who sees the huge impact our players’ support has, is that by simply relaxing restrictions on prize, individual draw and annual turnover limits the government could support the sector by increasing revenue opportunities."