> When is a UK prize competition outside gambling law? The Gambling Act 2005 tests that decide it, what they mean in practice, and how to check a site. Source page: https://granddraws.co.uk/guides/are-prize-competitions-gambling [All guides](https://granddraws.co.uk/guides) # Are prize competitions gambling? Last updated 25 September 2026 · 5 min read Short answer Not when it is set up properly. Under the Gambling Act 2005, paying to enter a draw decided wholly by chance is a lottery (section 14). A prize competition stays outside that definition in one of two ways: a skill or knowledge test that can reasonably be expected to stop a significant proportion of people from entering or winning (section 14(5)), or a free entry route of equal standing (Schedule 2, paragraph 8). A competition that is not a lottery, betting or gaming is not gambling under the Act (section 339) and needs no Gambling Commission licence. ## The two tests that decide it Nothing about the answer turns on how a site looks or what it calls itself. Section 14 of the Gambling Act 2005 defines a lottery as an arrangement where people pay to take part and prizes are allocated by a process that relies wholly on chance. A prize competition avoids that definition in one of two ways: - A genuine test of skill, knowledge or judgement. It only counts if it can reasonably be expected to stop a significant proportion of people from entering, or a significant proportion of entrants from winning a prize (section 14(5)). A question nobody could fail is treated as if it were pure chance. - A free entry route of equal standing. If everyone can choose to enter by a letter sent by ordinary post (or another way that is no more expensive and no less convenient than paying), the choice is publicised so people are likely to see it, and prizes are allocated without treating free entrants differently, the arrangement is not treated as requiring payment (Schedule 2, paragraph 8). ## Why we use both The skill test is the harder one to rely on alone. The Gambling Commission says multiple-choice questions, or questions that let you try again after a wrong answer, rarely meet it by themselves. So we don't rely on the question alone. Every paid Grand Draws competition has a genuine multiple-choice skill question and a free postal entry route built to the Schedule 2 conditions: the same chance of winning, shown on every competition before you buy, and open for the whole entry period. The details are on our free entry page. ## What "equal standing" actually means The free route can't be a box-ticking exercise. Schedule 2 asks for three things: the free route is no dearer and no less convenient than paying (a letter by ordinary post qualifies), the choice is publicised so that people who want to take part are likely to see it, and the way prizes are allocated makes no distinction between free and paid entries. That makes it a fair test of any site you're weighing up. A free route that's easy to find, stays open for the whole entry period and clearly carries the same odds is doing its job. ## How to check a site for yourself Four questions tell you whether a competition is built the way the law intends: - Is there a skill question, and would a wrong answer genuinely disqualify you? - Is the free postal route explained clearly, with the same odds stated in plain terms? - Does the site publish the total number of tickets, so you can work the odds out? - Is the result published afterwards, with enough detail for you to check it? ## What this is not This isn't a casino. There are no slots, no roulette, no blackjack and no betting on outcomes. Those are gambling activities that need a licence, and we won't build them. It isn't a lottery either. A lottery, in the Act's sense, is paid entry with prizes decided wholly by chance, and the two tests above are what take a prize competition outside that definition. The Gambling Commission confirms that no licence or permission is needed to run a prize competition or free draw that meets the Act's requirements. **Please note.** General information about the Gambling Act 2005, which applies in England, Wales and Scotland (Northern Ireland has separate legislation). It is not legal advice. ## Sources - [Gambling Act 2005, section 14: meaning of "lottery" (legislation.gov.uk)](https://www.legislation.gov.uk/ukpga/2005/19/section/14) - [Gambling Act 2005, Schedule 2, paragraph 8: choice of free entry (legislation.gov.uk)](https://www.legislation.gov.uk/ukpga/2005/19/schedule/2/paragraph/8) - [Gambling Act 2005, section 339: prize competitions (legislation.gov.uk)](https://www.legislation.gov.uk/ukpga/2005/19/section/339) - [Gambling Commission: Free draws and prize competitions](https://www.gamblingcommission.gov.uk/public-and-players/guide/page/free-draws-and-prize-competitions) Checked against these sources on 25 September 2026. ## Common questions **Does a skill question have to be difficult?** It has to be a real filter. The legal test is whether it can reasonably be expected to stop a significant proportion of people from entering or winning. The Gambling Commission says multiple-choice questions rarely meet that on their own, which is why every paid Grand Draws competition also has a free postal route. **Is the free postal route really the same odds?** It has to be. A free entry goes into the same draw on the same terms as a paid one, because the law requires the prize allocation to make no distinction between them. At Grand Draws each valid postal entry counts as one ticket. **Do you need a Gambling Commission licence?** No. The Gambling Commission says you don't need a licence or permission to run a prize competition or free draw that meets the requirements of the Gambling Act 2005. We hold no gambling licence because none is required for competitions that meet them. ## Related guides [Free postal entry, explainedHow to enter a UK prize competition free by post, why the odds are identical to a paid entry, and what the law asks of a free entry route.](https://granddraws.co.uk/guides/free-postal-entry-explained) [How we prove our draws are fairHow our commit-reveal draw works: a published SHA-256 commitment, a future drand beacon round, and a revealed seed that lets you recompute any winner.](https://granddraws.co.uk/guides/how-we-prove-our-draws-are-fair) [Online raffles in the UK, explainedAn "online raffle" is usually a prize competition, not a raffle in the legal sense. Here is the legal difference, and how to tell which you are entering.](https://granddraws.co.uk/guides/online-raffles-uk-explained) [What is a skill question, and why does it matter?What the skill question in a UK prize competition is for, what the law asks of it, and why getting it right matters on every entry, paid or free.](https://granddraws.co.uk/guides/what-is-a-skill-question) [Prize draw vs raffle: what is the difference?A raffle is a lottery in UK law; "prize draw" is a looser term that can mean three different things. The difference, and why it matters to entrants.](https://granddraws.co.uk/guides/prize-draw-vs-raffle) ## Be first when we open Paid competitions open 30 October 2026, and our free £500 launch draw runs 1 to 30 October. Create a free account for first pick of tickets, free welcome rewards and launch-day alerts. 18+. [Create a free account](https://granddraws.co.uk/account?next=early-access) ## Your ticket could be next Every competition has published odds, a draw anyone can verify and a free postal route. 18+. [Browse competitions](https://granddraws.co.uk/competitions) --- Grand Draws is a UK skill-based prize competition operator. It is not a casino, not a lottery and not gambling. Every competition requires a correct answer to a genuine skill question and offers a free postal entry route on the same odds. 18+, UK residents only. Please enter within your means.