Direct answer: A postcode lottery is a type of lottery where your entry is tied to your home postcode rather than a personal ticket number, and winning is determined by which postcodes are drawn. If your postcode is selected, everyone who holds a qualifying ticket in that postcode shares the prize. Prizes are usually funded by monthly subscriptions rather than single-ticket purchases, and proceeds often support charitable causes or the operator’s costs. How it generally works

• Entry: Players subscribe and provide their full postcode. Each postcode entry covers all residents in that postcode (or in a defined postcode area), and multiple people in the same postcode can win together if that postcode is drawn.
• Draws: Draws occur on a regular schedule (daily, weekly, or monthly, depending on the specific lottery). A winning postcode is selected at random, and all eligible entrants in that postcode win according to the prize structure.
• Prizes: Prize structures vary by lottery and by draw. Common formats include:
  • Daily or weekly cash prizes for winning postcodes
  • Larger “street” or area prizes for pools of postcodes
  • A “monthly millionaire” style prize where the entire postcode shares a multi-million prize
  • Occasional non-cash prizes or special promotions
• Payouts: When a postcode is drawn, every entry in that postcode that is active participates in the winning tier(s) for that draw. Payout arrangements and claim windows are defined by the operator and are usually accessible on their official website or terms and conditions.
• Costs: A monthly subscription fee covers participation in the relevant draws. The exact price varies by country and operator.

Notes and cautions

• Odds and fairness: Because winnings are postcode-based, your chances depend on how many entries exist in your postcode and on how often that postcode is drawn. The system often distributes funds among a large group of winners within the winning postcode. Always check the operator’s published odds for your postcode and the exact prize rules.
• Regulation: Postcode lotteries are regulated in many jurisdictions, with details varying by country. Ensure participation is legal where you live and review the operator’s licensing, withdrawal, and verification processes.
• Verification: Winners must typically meet age requirements and may need to verify identity and address before claiming prizes. Some prizes must be claimed within a specified period.

If you’d like, specify your country or the exact operator you’re curious about (for example, People’s Postcode Lottery in the UK or Deutsche Postcode Lotterie in Germany), and I can tailor the description to that specific version, including typical prices, draw frequency, and prize structures.