Online raffles in the UK, explained
In the UK, most things advertised online as a "raffle" are not raffles in the legal sense. A true raffle is a lottery: you pay to enter and prizes are decided by chance. Lotteries cannot be run for private or commercial gain, and most can only be run for good causes. The low-cost "raffles" run commercially are almost always prize competitions instead: a genuine skill test, a free entry route of equal standing, or both, takes them outside the lottery definition in the Gambling Act 2005. Same idea to a player, different legal footing.
Raffle, lottery, competition: the words people mix up
In everyday speech, "raffle", "prize draw", "competition" and "lottery" all mean the same thing: pay a bit, maybe win a prize. In law they do not.
A raffle is a lottery, and a lottery is an arrangement where you pay to take part and prizes are allocated wholly by chance (section 14 of the Gambling Act 2005). A prize competition is different: a genuine skill test or a free entry route of equal standing takes it outside that definition.
Why the difference matters
Lotteries cannot be run for private or commercial gain. Outside the National Lottery, they are mostly limited to good causes, such as society lotteries run for charities and sports clubs, and lotteries run by local authorities, which operate under a Gambling Commission licence or a registration with the local council, plus a few small exempt types. Promoting a lottery outside those rules is an offence (section 258).
A prize competition needs no gambling licence, because the skill test or the free entry route takes it outside the definition of a lottery; the Gambling Commission confirms no licence or permission is needed for one that meets the Act's requirements. That is the legal box almost every commercial "online raffle" actually sits in, ours included.
How to tell which one you are entering
A few quick checks tell you what you are really looking at:
- Is there a genuine skill question you have to answer, where a wrong answer disqualifies you? If yes, it is set up as a prize competition.
- Is there a free postal entry route on the same odds as paying, clearly publicised? If yes, that is the other route out of lottery law.
- If neither is present and you are paying to enter a draw decided purely by chance, it is a lottery, and a lottery run for private profit is not allowed. Give it a miss.
So what is Grand Draws?
We run prize competitions, not raffles or lotteries. Every paid competition carries both safeguards at once: a real skill question and a free postal entry of equal standing. Neither is ever removed, because removing them is what would turn a competition into an unlicensed lottery.
So if you searched for an "online raffle" and landed here, this is the prize competition version of the thing you were picturing: no gambling licence needed, and cash prizes paid straight to your bank.
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)
- Gambling Act 2005, Schedule 2, paragraph 8: choice of free entry (legislation.gov.uk)
- Gambling Act 2005, section 258: promotion of lottery (legislation.gov.uk)
- Gambling Commission: Raffling big ticket items, prizes, pitfalls and potential risks
- Gambling Commission: Free draws and prize competitions
Checked against these sources on .
Common questions
Are online raffles legal in the UK?
A true raffle is a lottery, and lotteries cannot be run for private or commercial gain, so a commercial raffle in the legal sense is not allowed. Most commercial "online raffles" are actually prize competitions, which need no licence when a genuine skill test or an equal free entry route takes them outside the lottery definition.
Is a prize competition the same as a raffle?
Not in law. A raffle is decided purely by chance; a prize competition adds a skill test or a free entry route, so it falls outside the lottery definition. To a player they feel similar, but the legal footing is different.
Do I have to pay to enter an online raffle or competition?
A competition that relies on a free entry route must offer it on the same terms as paying, usually by post. Every Grand Draws paid competition has one, so you can always take part without paying.