Prize competitions and free draws

Part of: Lotteries and society lottery registration

Contents

Prize competitions and free draws are not classed as lotteries under the Gambling Act 2005. They are exempt from licensing or registration if they meet the legal requirements below.

Prize competitions

A prize competition is based on skill, judgement or knowledge rather than chance.

They are exempt from lottery controls if the competition:

  • requires genuine skill or knowledge to enter, and
  • the level of difficulty is high enough that:
  • a significant number of people are prevented from entering, or
  • a significant number of entrants are prevented from winning

If a competition charges for entry but does not meet these conditions, it may be treated as an illegal lottery, and organisers could face prosecution.

Free draws

A free draw is not a lottery because no payment is required to enter. 

The Gambling Act explains what counts as free and what counts as payment:

  • Entry routes are free if they use a standard-rate postal or phone method that does not include any premium charge.
  • If a competition offers both paid and free entry routes, the free route must:
    • be as easy to use as the paid route
    • be clearly publicised
    • give entrants the same chance of winning

Product promotions are allowed if the price of the product does not include any extra cost for entering the prize draw.

More information

For detailed guidance on prize competitions and free draws, visit the Gambling Commission website.