Oxford City Council is to set up a lottery to raise money for voluntary and community sector groups.
It expects the Oxford Lottery to raise at least £60,000 a year for local good causes to cope with growing demand for funds.
It is the latest in a growing number of lotteries run by local authorities to raise money.
Players in Oxford will be able to choose local good causes as beneficiaries or to support a general fund.
Susan Brown, board member for customer and corporate services, said: ‘Although the council gives more than £1.4m a year to voluntary and community groups, we can’t meet demand for grants.
‘Last year we received applications for three times the amount of money we had available.
‘The Oxford Lottery is a great opportunity to raise money for good causes in the city.’
