A UK prize competition looks a lot like a raffle: you buy a numbered ticket, the operator sells up to a fixed number of them, and on a set date one number is picked to win. What makes it legal for a company to run one without a gambling licence is a short passage in the Gambling Act 2005, and most of the details you see on a competition page exist because of it.
Why a paid prize draw is legal
Under the Gambling Act 2005, a scheme where people pay to enter and the prize is decided purely by chance is a lottery. Lotteries are tightly controlled: outside the National Lottery, they can only be run by licensed societies, local authorities and a few exempt groups. A company selling tickets for a car on pure chance would be running an illegal lottery.
Section 14 and Schedule 2 of the Act set out two ways a paid competition stays outside that definition. An operator only needs to meet one of them:
- A real test of skill or judgement. The question has to be hard enough to stop a significant proportion of people entering or winning. A question nearly everyone gets right does not count, which is why the law is wary of "what colour is the sky" style questions.
- A free way to enter on equal terms. If anyone can enter without paying, usually by post, and that entry has the same chance as a paid one, the competition is not a lottery. See our guide to free postal entry.
Many UK operators do both: a multiple-choice question on the checkout page and a postal route in their terms. Because they are not lotteries, prize competitions are not licensed by the Gambling Commission. Consumer protection law, advertising rules (the CAP Code, enforced by the ASA) and general contract law still apply, and since 2025 there is a government Voluntary Code of Good Practice for Prize Draw Operators that operators can sign up to.
What is on a competition page
Almost every UK competition is described by the same handful of facts. These are the ones worth reading before you pay.
| Detail | What it tells you |
|---|---|
| Ticket price | The cost of one entry. Some operators discount bundles or run a lower price for a short time. |
| Ticket cap (max entries) | The most tickets that will ever be sold. At sell-out, one ticket is a 1 in cap chance of the main prize. |
| Tickets sold or % sold | How far through the cap the draw is. If the operator draws before selling out, this is the real size of the pool. |
| Closing date and time | When ticket sales stop. The draw itself may happen later the same evening, often on a live stream. |
| Per-person limit | The most tickets one entrant can buy, which stops one person buying most of the draw. |
| Cash alternative | A fixed sum you can take instead of the prize. Often the fairest figure for comparing draws. See prize or cash alternative. |
| Instant wins | Extra prizes attached to specific ticket numbers and won the moment you buy. See how instant wins work. |
How the winner is picked
Every entry, paid or postal, is given a ticket number. After sales close, the operator picks one number at random. The common methods are:
- A random number generator, often Google's, run on screen during a live stream on Facebook, YouTube or the operator's own site, so viewers can watch the number come up.
- A third-party draw service that generates and records the result independently of the operator.
- A physical draw with numbered balls or a machine, filmed for the same reason.
A well-run operator publishes the full entry list or lets you check your ticket numbers in your account, names the winning ticket, and posts the winner afterwards. If you cannot find any of that on a site, treat it as a reason to look harder at the operator. Our guide to checking a competition site covers what to look for.
If the draw does not sell out
Not every competition reaches its cap. The terms decide what happens next: most operators draw on the advertised date from the tickets actually sold, some extend the closing date, and a few switch to a smaller cash prize or cancel and refund. Each has a different effect on your odds, and we cover them in what happens when a competition doesn't sell out.
Who can enter
UK operators almost always require entrants to be 18 or over and resident in the UK (sometimes the UK and Ireland). Many check age and identity before releasing a prize, so an entry made in someone else's name can be voided. Staff and their families are usually excluded. All of this sits in the competition terms, which are the contract between you and the operator.
Where this site fits in
We do not run draws or sell tickets. We read operators' sites and put their live competitions side by side, with the ticket price, the cap, how many have sold and when each one closes, so you can compare before you go to the operator to enter. Browse every live competition, or start with draws with small ticket caps or free entry.
Quick answers
Are prize competitions legal in the UK?
Yes. Under the Gambling Act 2005, a paid competition is a prize competition rather than a lottery if it needs genuine skill or judgement to enter or win, or if it offers a free way to enter on equal terms. Operators that meet either test do not need a gambling licence.
How is the winner of a prize competition chosen?
Most UK operators assign every entry a ticket number and pick the winning number with a random number generator, often Google's, on a live stream after the draw closes. Some use a draw machine or a third-party draw service.
Is a prize draw the same as a raffle?
Not legally. A raffle that sells tickets on pure chance is a lottery and needs a licence or an exemption. A paid prize draw avoids lottery rules by adding a skill question, a free entry route, or both.