Guide
Prize Draw, Prize Competition, Raffle or Lottery?
Organisers and entrants often use words such as draw, competition and raffle casually, but the legal structure depends on how entry and winner selection actually work. A label alone does not decide whether an arrangement is a free draw, prize competition or lottery.
This is a plain-English overview for entrants. It is not advice on how to structure or operate a promotion.
Free draws
The Gambling Commission describes two broad types of free draw. In one, every entry is free. In the other, people can choose between paid and free entry routes.
For a dual-route draw, the free route must be visible, available at the normal rate, no more expensive and no less convenient than the paid route, and treated equally when prizes are allocated. First or second class post can count as normal-rate communication, while special delivery does not.
Prize competitions
A prize competition relies on skill, knowledge or judgement. The Gambling Commission says the challenge must be capable of discouraging a significant proportion of potential entrants or preventing a significant proportion from winning. A simple multiple-choice question will not necessarily meet that threshold.
A genuine prize competition does not automatically need a free entry route. It sits outside lottery regulation because the qualifying skill requirement means the result is not determined wholly by chance.
Lotteries and the word raffle
A lottery generally involves payment, prizes and allocation wholly by chance. Lotteries are regulated and cannot ordinarily be run for private or commercial gain without an appropriate lawful structure.
“Raffle” is often used informally. The Gambling Commission notes that people may use it to describe a lottery, free draw or prize competition. The mechanics matter more than the word used in an advert.
Purchase promotions
Some promotions allow entry following an ordinary product purchase. Whether an additional payment is being made for the chance to win can depend on the circumstances, including whether the product price reflects the opportunity to participate. Entrants should read the terms rather than assuming every purchase promotion requires a postal route.
Instant-win promotions
An instant-win promotion tells entrants immediately whether they have won. The terms should explain the entry method, prize allocation and significant conditions. The phrase “instant win” does not by itself explain the legal structure behind the promotion.
What entrants should check
- Who the promoter is.
- Whether entry is free, paid, purchase-linked or skill-based.
- How any free route works.
- Whether the winner is selected randomly or judged.
- The closing date, eligibility and entry limits.
- How prizes will be awarded and winners contacted.
Official guidance
- Gambling Commission, free draws and prize competitions.
- Gambling Commission, when a lottery is not a lottery.
- ASA and CAP, promotional marketing guidance.
If you believe an arrangement may be an unlawful lottery, use the reporting information provided by the Gambling Commission. Organisers should obtain legal advice about their own structure.
Choose the right entry route
For the practical details, read how postal free-entry routes work. If a competition charges for entry, our guide to paid competitions and setting a sensible budget explains the checks to make before spending money.