> 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. Source page: https://granddraws.co.uk/guides/prize-draw-vs-raffle [All guides](https://granddraws.co.uk/guides) # Prize draw vs raffle: what is the difference? Last updated 1 October 2026 · 5 min read Short answer In UK law a raffle is a lottery: you pay for a numbered ticket and the winner is decided wholly by chance. A lottery cannot be run for private or commercial gain, so raffles are mostly run for good causes, under a Gambling Commission licence or a local authority registration. "Prize draw" is a marketing phrase rather than a legal category, and can describe a free draw, a prize competition or a lottery. A raffle is always a lottery; a prize draw may or may not be, depending on how it is built. ## One of these words is a legal category "Raffle" has a settled meaning. Numbered tickets are sold, a ticket is drawn, the holder wins. That is a lottery in the sense the Gambling Act 2005 uses, because entry is paid for and the winner is decided wholly by chance (section 14). "Prize draw" has no settled meaning at all. It is a marketing phrase, and the same two words cover a free promotion on a cereal box, a paid competition with a skill question, and occasionally something that is in fact a lottery. So the honest answer to "is a prize draw the same as a raffle" is no, and not quite for the reason people expect. A raffle is always a lottery. A prize draw is whatever its mechanics make it. ## Side by side Six lines of difference, in the order that matters: - The word. "Raffle" describes a mechanic: paid numbered tickets, drawn at random. "Prize draw" describes a promotion, with no mechanic implied. - Legal classification. A raffle is a lottery. A prize draw can be a free draw, a prize competition or a lottery. - Who can run it. A lottery cannot be run for private or commercial gain, so raffles are mostly run for good causes under a Gambling Commission licence or a local authority registration, or as one of the small exempt types. A free draw or a prize competition can be run by anyone, a business included. - Skill question and free entry. A raffle has neither and does not need them: its licence or exemption is what makes it lawful. A paid prize competition needs one or both, because that is what keeps it out of the lottery definition. - Where you meet them. Raffles at school fetes, club nights and charity events. Prize draws on consumer promotions and competition websites. - What backs it up. A licensed lottery operates under conditions set by the Gambling Commission. A prize competition sits outside that regulation, so what you can check depends on what the operator publishes. ## Why the raffle label carries the legal weight Calling a paid, chance-only promotion a raffle names it accurately, and naming it accurately brings the lottery rules with it. Promoting a lottery outside the permitted types is an offence under section 258 of the Act, and the permitted types are narrow: the National Lottery, society lotteries run for good causes, local authority lotteries, and a small group of exempt lotteries such as incidental, private and customer ones. Which is why a commercial site charging for entry is not running a raffle, however it is advertised. Either it has a skill test or a free entry route, in which case it is a prize competition, or it has neither, in which case it has a problem. The Gambling Commission has written about exactly this when big-ticket items get raffled without the legal footing being thought through. If it is the word itself you are researching rather than the comparison, our guide to online raffles in the UK goes through that vocabulary properly. ## Does the difference matter to you as an entrant? It changes what stands behind the promotion, which is worth knowing before you pay. A licensed lottery operator works to licence conditions and codes of practice set by the Gambling Commission, and the Commission can act on them. Prize competitions and free draws sit outside that regulation, and the Commission has pointed out that they may not carry the same protections as licensed gambling. Their advertising is covered by the CAP Code and the Advertising Standards Authority, and the Government has published a voluntary code of good practice for prize draw operators, but a good deal of the checking falls to you: the published ticket cap, the free entry route, the operator on the Companies House register, and the result afterwards. Our comparison checklist sets out the full list. ## When the words get used loosely Neither label is reliable on its own, and all three of these are common: - A "raffle" that is actually a prize competition. The word is familiar, so commercial sites reach for it. The mechanic, not the label, decides the legal position. - A "prize draw" that is actually a charity raffle, licensed or registered, and perfectly lawful. Just loosely labelled. - A "competition" with a skill question nobody could fail and no free entry route. The Gambling Commission says multiple-choice questions rarely meet the skill test on their own, so a question by itself may not be doing the job claimed for it. ## Which one is Grand Draws? Neither a raffle nor a lottery. We run prize competitions: every paid competition carries a genuine multiple-choice skill question and a free postal entry route of equal standing, and we hold no gambling licence because none is required for a competition that meets the Act's requirements. If you are weighing us up against the National Lottery rather than against a raffle, that is a different comparison, and our guide on prize competitions vs the lottery covers the odds, cost and prize side of it. **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, section 258: promotion of lottery (legislation.gov.uk)](https://www.legislation.gov.uk/ukpga/2005/19/section/258) - [Gambling Commission: Raffling big ticket items, prizes, pitfalls and potential risks](https://www.gamblingcommission.gov.uk/news/article/raffling-big-ticket-items-prizes-pitfalls-and-potential-risks) - [Gambling Commission: Consumer information notice on free draws and prize competitions](https://www.gamblingcommission.gov.uk/news/article/consumer-information-notice-free-draws-and-prize-competitions) - [CAP Code, section 8: promotional marketing (ASA)](https://www.asa.org.uk/type/non_broadcast/code_section/08.html) Checked against these sources on 1 October 2026. ## Common questions **Is a prize draw the same as a raffle?** No. A raffle means paid numbered tickets drawn at random, which is a lottery in UK law. "Prize draw" is a marketing phrase with no legal meaning and can describe a free draw, a paid prize competition or a lottery, so the mechanics are what tell you which one you are looking at. **Is a raffle a lottery in the UK?** Yes. Paying for a ticket where the winner is decided wholly by chance meets the definition of a lottery in section 14 of the Gambling Act 2005, whatever the promotion is called. **Can a business run a raffle to make a profit?** No. A lottery cannot be run for private or commercial gain, and promoting one outside the permitted types is an offence under section 258 of the Act. A business wanting to run a paid prize promotion uses a prize competition structure instead, with a genuine skill test, a free entry route of equal standing, or both. **Why do competition sites use the word raffle?** Because it is the word people search for and recognise. It does not change the legal position: if entry is paid and the structure includes a genuine skill test or an equal free entry route, it is a prize competition rather than a raffle, whatever the page calls it. **Is Grand Draws a raffle?** No. We run prize competitions. Every paid competition has a genuine multiple-choice skill question and a free postal entry route on the same odds, which is what keeps them outside the lottery definition, so no gambling licence is needed. ## Related guides [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) [Prize competitions vs the lottery: which is the better bet?How a UK prize competition differs from the National Lottery on odds, cost, prizes and the law, and where each one actually gives you the better shot.](https://granddraws.co.uk/guides/prize-competitions-vs-lottery) [Are prize competitions gambling?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.](https://granddraws.co.uk/guides/are-prize-competitions-gambling) [How UK prize draws workWhat a prize draw is, how entries, odds and the draw itself work in the UK, and the different legal footings a draw can sit on.](https://granddraws.co.uk/guides/how-uk-prize-draws-work) ## 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.