The reforms have been welcomed by the third sector.
New rules raising the annual sales limit for charity lotteries to £50 million come into force today.
The reforms come after legislation passed in March set the new limit, up from the previous maximum of £10m which had been in place since 2005.
Charities and parliamentarians welcomed the change, which will allow lotteries to drastically increase the amount they raise for good causes.
In the case of the People’s Postcode Lottery, the annual funding available for small charities will more than double, from around £9m to £20m.
Dame Ellen MacArthur, charity founder and former round the world yachtswoman, said the change would make a real difference to organisations supported by lottery money.
She said: “I have seen first-hand the real difference funding raised by players of People’s Postcode Lottery can make. Support from players has furthered the important work of my charities – The Ellen MacArthur Cancer Trust and the Ellen MacArthur Foundation, and enabled so many others, large and small to continue playing their vital roles.
“I am pleased that these changes will allow more money to reach good causes and increase the difference they make to people and society.”
Heritage minister Nigel Huddleston said: "This change will mean more money is raised for deserving charities and that help and support can reach those who need it.
"Players of the People's Postcode Lottery have an important role in raising millions for good causes and I'd like to acknowledge their vital contributions."
Clara Govier, People’s Postcode Lottery managing director, added: “Today is the result of years of consultation, debate and collaboration and is a cause for celebration for charities and good causes everywhere.
“Our focus now is to ensure the increased funds have the biggest possible impact. Each year, players of People’s Postcode Lottery raise millions of pounds, benefitting thousands of good causes working to cut poverty, tackle isolation, improve health and well-being, and much more. This change will now let us do even more for the good causes players support.”