Why the distinction is worth two minutes
Because the three are regulated completely differently, and the difference decides what you
are owed. A free draw with nothing to pay sits outside gambling licensing altogether. A paid
competition is lawful only because it carries a genuine skill question or a free route of
equal standing, and if it carries neither it is an unlicensed lottery. A brand promotion on
social media is an advertisement, and the CAP Code expects its terms to be available before
you enter rather than produced afterwards.
None of which is visible from the word on the graphic. It is visible from the entry route,
which takes about ten seconds to find and is the only thing that reliably tells you what
kind of promotion you have landed on.
What a promoter has to tell you
Whoever runs it, some things are not optional. The promoter has to be identifiable: a real
company name, not a handle. The closing date has to be stated. The prize has to be described
properly rather than gestured at. And if entries are being collected, the promoter is
handling personal data and has to say who they are, what it is for and how long it is kept.
One specific thing is worth knowing because it is broken so often: signing up to
marketing cannot be the price of entering. Consent to be emailed has to be a
separate, unticked choice. An entry form that bundles the two together has got the law
wrong, and it is a fair guide to how carefully the rest has been thought about.
Where we sit in this
We are the third kind, and we would rather say so than call it a giveaway. Tickets are sold,
every competition carries a skill question, and
a free postal route takes exactly the same chance as a paid
ticket. The ticket cap is published before entry opens, so
you can work out your odds before you spend anything,
and the draw goes ahead on its closing date whether or not it sells out.
We also run the second kind. Our free draw has nothing to buy
and no catch to find, and
the other free routes are here.