People Pay to Participate
Payment is one of the central tests. That is why a genuine free entry route can change the legal position of a commercial draw.
The simplest way to separate the formats
What Is the Difference Between a Lottery, Prize Draw and Competition?
The name used in an advert is not enough. The useful questions are: must you pay, is the result decided by chance, is there a genuine free route, and does skill actually affect who can win?
| Format | Do you have to pay? | How is the prize decided? | Main UK legal route | Can it be run for commercial gain? | Typical example |
|---|---|---|---|---|---|
| Lottery | Yes | Wholly by chance, or by a process beginning wholly by chance | National Lottery legislation, licensed/registered society lottery or lawful exempt lottery | Ordinary commercial lotteries for private gain are not generally permitted | National Lottery; licensed charity/society lottery |
| Free prize draw | No purchase must be necessary; a paid route can exist alongside a genuine free route | Chance | Outside lottery licensing if the free-entry requirements are properly met | Yes | Many house, car and cash draw sites |
| Prize competition | Can charge | Skill, knowledge or judgement must meet the legal test | Outside lottery licensing if the competition genuinely satisfies the skill test | Yes | A sufficiently demanding skill contest; judged Spot the Ball is one current commercial example |
| Paid chance-only social-media raffle | Yes | Chance | May be an illegal lottery if no lawful lottery or free-draw route applies | Not lawfully as a simple private-profit lottery | Some informal Facebook/TikTok/Instagram raffles |
The wording on the advert does not decide the law. Calling something a “competition”, “raffle”, “giveaway” or “draw” does not by itself tell you what it legally is. The entry mechanics and winner-selection process matter.
Payment + prize + chance
What Legally Makes Something a Lottery in Great Britain?
The Gambling Act definition is built around three basic ingredients: people pay to take part, prizes are offered, and those prizes are allocated wholly by chance — or through a series of processes where the first process relies wholly on chance.
A Prize Is Available
The prize could be cash, a house, a vehicle, goods or another benefit. The label attached to the promotion does not change this part of the test.
Chance Decides the Winner
If the prize is allocated wholly by chance, the arrangement can fall within the lottery definition unless another lawful structure applies.
The National Lottery is a special case. It is run by commercial operator Allwyn under the National Lottery's separate statutory licensing framework. The current licence runs from February 2024 to January 2034.
Society lotteries are different again. Licensed and registered society lotteries are run for non-commercial purposes such as charities, sport or other good causes. They should not be confused with commercial prize-draw businesses.
Chance-based but with a free route
What Is a Free Prize Draw?
A free draw can still look very similar to a paid competition site. The important point is that participants must have a genuine way to take part without paying more than the normal cost of communication.
Paid and Free Routes Can Sit Together
A website can sell entries while also accepting a lawful free route, commonly by ordinary first- or second-class post.
The Free Route Must Be Real
It cannot exist only in theory. It should be available on workable terms and promoted so potential entrants can reasonably find it.
Free Entries Must Reach the Same Draw
The system deciding the prize should not favour paid entries over qualifying free entries.
The Operator Can Still Make a Profit
Unlike an ordinary paid lottery, a qualifying commercial free draw can be run for private or commercial gain.
This is why many sites that consumers casually call “raffle sites” are actually structured as commercial free draws with a paid route and a postal route.
One of the most misunderstood features
Why Do Competition Sites Offer Free Postal Entry?
For many chance-based commercial draws, the postal route is part of the structure that keeps the promotion outside the definition of a paid lottery. It is not simply a promotional bonus.
1
Find the Exact Free-Entry Instructions
Check the draw page and terms for the address, wording, account details and closing date.
2
Follow the Instructions Exactly
Many operators require an unenclosed postcard or one entry per envelope, plus specific contact and competition details.
3
Allow Time for Receipt and Processing
The postal cut-off can differ from the online purchase deadline. Posting something on the final day may be too late.
4
Check How You Know It Was Entered
Some operators add the entry to an account or issue a ticket number; others explain processing differently in their rules.
Omaze
Current UK rules state that no purchase is necessary and eligible postal entries have the same chance as individual paid entries. One eligible entry is credited per outer mailing envelope or postcard.
Elite Competitions
Current terms say qualifying postal entries have the same chance per entry as paid online entries, with each postal entry sent separately.
McKinney Competitions
Current draw pages visibly show an online-entry option and a free postal-entry route, with separate postcards required for multiple free entries.
Free does not necessarily mean zero cost. Ordinary postage can still be required. The legal question is whether the route meets the free-entry rules, including the normal-rate and convenience requirements.
A real legal distinction
What Is a Genuine Skill-Based Prize Competition?
A prize competition can charge for entry without becoming a lottery if the outcome genuinely depends on skill, knowledge or judgement at the level required by law.
An Easy Question Is Not Automatically Enough
The Gambling Commission says a simple multiple-choice question will not normally satisfy the test if almost everyone can answer it correctly.
The Test Must Filter Entrants or Winners
The skill, knowledge or judgement should deter a significant proportion of potential entrants or prevent a significant proportion from winning.
BOTB Shows a Different Model
BOTB currently uses judged Spot the Ball for its Dream Car competition. Entrants choose coordinates and an independent judging panel determines the target position.
Important: many websites still ask a very simple question even when they also offer a free postal route. Do not assume the presence of a question means the promotion legally relies on skill rather than its free-entry structure.
How familiar UK names fit into the picture
How Do Omaze, BOTB and Competition Sites Fit Into These Categories?
The table is illustrative rather than a permanent legal label. Operators can run more than one product type, so always check the rules for the exact draw you are entering.
| Operator / product | Current example of format | What the current material shows | 2026 DCMS Code status | Read more |
|---|---|---|---|---|
| The National Lottery | Licensed lottery | Allwyn operates under the Fourth National Lottery Licence and individual game licences. | Not the voluntary prize-draw-code model | UK lottery guides |
| Omaze UK | Free prize draw | Paid entry plus postal alternate method; current rules say eligible entries have equal chances. | Current DCMS operator signatory — checked 27 September 2026 | What is Omaze UK? |
| BOTB | Mixed formats | Current products include judged Spot the Ball, skill-based competitions and free-entry competitions. | Current DCMS operator signatory — checked 27 September 2026 | Competition-site checks |
| Rev Comps | Commercial prize draws | Current DCMS code signatory; check each live promotion's entry and prize terms. | Current DCMS operator signatory — checked 27 September 2026 | Operator comparison |
| Dream Car Giveaways | Commercial prize draws | Current pages show online and free postal entry; examples advertise fixed closing dates and draws proceeding regardless of sales. | Current DCMS operator signatory — checked 27 September 2026 | Operator comparison |
| Elite Competitions | Commercial prize draws | Current terms provide postal entry and state equal chance per entry for postal and online entries. | Current DCMS operator signatory — checked 27 September 2026 | Operator comparison |
| McKinney Competitions | Commercial prize draws | Current draw pages publish ticket caps, ticket price, percentage sold and a free postal route. | Current DCMS operator signatory — checked 27 September 2026 | Operator comparison |
| 7 Days Performance | Prize draws / instant reveal | Current products include postal-entry routes and instant-reveal mechanics with the outcome generated separately from the visual reveal animation. | Current DCMS operator signatory — checked 27 September 2026 | Operator comparison |
DCMS signatory does not mean “Government approved”. It means the operator appears on the current voluntary-code signatory list. The code is not legislation, a gambling licence or a guarantee that every promotion is error-free.
Different products, different legal frameworks
Are Prize Draw and Competition Sites Regulated by the Gambling Commission?
Not in the same way as the National Lottery or licensed gambling products. Lawful free draws and genuine prize competitions sit outside lottery licensing because they meet legal exemption tests.
National Lottery
Licensed and regulated by the Gambling Commission under the National Lottery statutory framework.
Society Lotteries
Large society lotteries require a Gambling Commission operating licence; small society lotteries can require local-authority registration.
Qualifying Free Draws
Do not require a gambling licence merely because prizes are allocated by chance, provided the free-entry structure meets the legal requirements.
Genuine Prize Competitions
Can operate outside lottery licensing where the skill, knowledge or judgement test is genuinely met.
Prize draw operators are still subject to other legal frameworks including consumer protection, advertising rules and data-protection law. “Not licensed as gambling” does not mean “unregulated by everything”.
Major 2026 change
What Is the Voluntary Code of Good Practice for Prize Draw Operators?
The Government published the code in November 2025 and existing signatories were expected to implement it fully by 20 May 2026. It focuses on player protection, transparency and accountability.
Age and Spending Controls
Signatories should be 18+, use reasonable age verification and provide overall spend controls or player-set monthly limits.
Credit-Card Limits
The code sets a £250 monthly credit-card limit per player and says credit cards should not be accepted at all for instant-win prize draws.
Clear Free Entry
The free route should be clearly and prominently available before purchase and allow enough time for entries to be received and processed.
Transparent Draw Mechanics
Operators should explain how winners are selected and, where possible, provide useful information about likelihood of winning.
No Low-Sales Downgrade
Signatories should not lower the prize, postpone the draw or cancel because sales were weaker than expected.
Fair Winner Selection
The code calls for independent selection/supervision unless a verifiably random auditable computer process or certified physical machine is used.
Account Suspension and Closure
Players should be able to suspend an account for at least six months or close it permanently, with marketing stopped during suspension.
Charity Claims Should Be Clear
Where charitable giving is part of the promotion, the parameters and, where possible, the amounts and frequency should be transparent.
The code is voluntary. It does not replace the Gambling Act, consumer law, CAP/BCAP advertising rules or data-protection law. Signatory status should never be described as Government approval.
Price is not probability
Does a Cheaper Competition Ticket Mean Better Odds?
No. The ticket price is only the price of an entry. To understand the chance of winning, you need to know how many valid entries can go into the draw and how many entries you hold.
£5 Ticket, 10,000 Maximum Entries
One entry against a full 10,000-entry pool would be approximately 1 in 10,000 for one equally weighted end prize.
10p Ticket, 1,000,000 Maximum Entries
One entry against a full one-million-entry pool would be approximately 1 in 1,000,000 for one equally weighted end prize.
More Entries Change Your Chance
Ten entries in a 10,000-entry final pool would be approximately 1 in 1,000, assuming all entries are equally weighted and there is one relevant prize.
Current McKinney pages illustrate the spread particularly well: MLL found one draw capped at 4,999 tickets and another at 999,999 tickets. The cheaper ticket was not automatically the shorter-odds ticket.
Prize Draw Odds Calculator
Convert an entry pool into a plain-English chance for a simple random draw with one relevant prize.
Approximate chance1 in 10,000
Approximate percentage chance0.0100%
Your paid-entry cost£1.00
Your share of the assumed entry pool0.0100%
This is deliberately simple. It assumes one relevant prize, a final pool of equally weighted valid entries and no special mechanics. Maximum-ticket figures show the worst-case pool only if every available entry is ultimately valid and included. Multiple prizes, instant wins, bonus draws, subscriptions, free-entry multipliers or other mechanics need separate calculations.
A common forum question
What Happens if a Competition Does Not Sell All Its Tickets?
This used to be one of the biggest areas of confusion because different promotions used different fallback rules. The 2026 voluntary code now sets a clearer expectation for signatories.
The Draw Should Still Happen
The code says signatories should not change the end date or cancel a draw because ticket sales are low.
The Prize Should Not Shrink Because Sales Were Low
The advertised prize should be awarded, or a reasonable cash alternative provided in line with the code and promotion terms.
Read the Exact Promotion Terms
General operator terms are not enough. Check the specific draw page for closing date, maximum entries, prize wording and any stated cash alternative.
ASA guidance also warns promoters about changing closing dates, withholding the advertised prize or replacing it with a substantially lower-value alternative.
Random should be explainable
How Should Competition Sites Choose a Winner?
For chance-based draws, the important question is not whether a live video looks exciting. It is whether the selection process is fair, auditable and consistent with the published rules.
Independent Selection
An independent person can conduct or supervise the winner selection.
Auditable Random Software
The 2026 code allows a computer process where the results are verifiably random and auditable.
Certified Physical Draw Machine
A certified physical machine can also be used under the code.
Explain the Mechanism
The operator should tell entrants how its draw is actually conducted rather than leaving the process vague.
ASA guidance separately requires promoters to be able to demonstrate that prize-draw winners were selected randomly. A livestream can add transparency, but a livestream alone does not prove the underlying entry list or random process is sound.
Car, house or cash?
Can You Take Cash Instead of the Advertised Prize?
Only if the terms provide for it, or a reasonable equivalent is offered where the original prize cannot be supplied. Do not assume every house, car or watch automatically comes with a cash option.
Some Operators Advertise a Cash Choice
Where a cash alternative is shown before entry, check the exact figure and whether choosing cash affects any other part of the prize package.
A Substitute Should Be Reasonable
ASA guidance says an alternative prize should normally be similar in nature and value to what was advertised.
Do Not Assume “RRP” Equals Cash Value
Cars, watches and other goods can have a retail price that differs from their resale value. Read the stated cash-alternative terms rather than estimating it yourself.
Why the same name can appear again
Why Do Some People Seem to Win Competition Sites More Than Once?
Repeat winners create a lot of suspicion on Reddit and car forums, but repetition alone does not prove a draw is rigged.
Frequent Players Enter More Draws
Someone entering several draws every week has many more opportunities to appear on a winners list than someone entering once a year.
Multiple Entries Increase Exposure
If a promotion permits hundreds of entries per person, regular high-volume entrants can represent a larger share of the entry pool.
Check the Process, Not the Pattern Alone
Useful checks are the entry cap, individual entry limit, auditable selection process, winners history and evidence that prizes are actually awarded.
Community discussions are useful for spotting the questions consumers care about, but an online allegation about a winner or operator is not evidence by itself. MLL uses operator terms and official/regulatory material for factual claims.
A different draw mechanic
Are Instant-Win Competitions Different From Normal Prize Draws?
Yes. Instead of waiting for one closing-date draw, an instant-win product can allocate a winning or losing outcome when an entry is processed.
The Reveal Animation May Not Decide the Result
Some current operators state that the outcome is generated or predetermined separately and the wheel, card or animation is only the reveal.
Read the Prize Pool
Check how many prizes exist, whether the pool is fixed or unlimited, whether prizes can already have been won and whether an end prize also exists.
Credit-Card Rules Are Tighter Under the Code
The 2026 voluntary code says signatories should not accept credit-card payments at all for instant-win prize draws.
Before spending money
What Should You Check Before Entering a Prize Draw or Competition Site?
No single badge or review score proves that every promotion is suitable. Check the actual draw in front of you.
- Who is the legal promoter and can you identify the company?
- Is this a lottery, free draw or genuine skill competition?
- Where is the free entry route if the draw relies on one?
- Is the free route visible before payment and practically usable?
- Is the maximum number of entries or useful odds information shown?
- How many entries can one person hold?
- Is the closing date fixed?
- What exactly is the prize and is there a stated cash alternative?
- What happens if the draw is undersold?
- How is the winner selected and can the process be audited?
- Are previous winners and completed draws visible?
- Are spending limits, suspension and account closure available?
- Is there a clear complaints or dispute process?
- Have you read the terms for this exact promotion, not just the homepage?
For a deeper operator-by-operator check, continue to Are UK Prize Competition Sites Legit?. That page covers company checks, the current DCMS signatory list, winner evidence, terms and red flags in more detail.
What real entrants keep asking
What Do UK Competition Entrants Worry About Most?
Reddit, MoneySavingExpert-style comping communities and specialist competition forums repeatedly raise the same practical questions. MLL has used those questions to shape this guide, while factual answers come from official rules and operator terms.
“Are the winners real?”
Look for completed draws, winner histories, selection method and evidence of prize fulfilment rather than relying only on social comments.
“Do postal entries actually count?”
Check the operator's processing rules and deadlines. A lawful free draw should not give a qualifying paid entry better odds than a qualifying free entry.
“Is 10p a better bet than £5?”
No. Compare entry pool and prize structure, not ticket price alone.
“Why do I keep seeing the same winners?”
Frequency and entry volume matter. Investigate the draw process before treating repeat names as evidence of wrongdoing.
Questions answered
Lottery vs Prize Draw vs Competition: FAQs
Plain-English answers to the questions people repeatedly ask about UK lotteries, postal entry, competition sites, odds and online raffles.
What is the difference between a lottery, prize draw and competition in the UK?
A lottery normally involves payment, prizes and allocation by chance. A lawful free draw avoids lottery status by providing a genuine free entry route or being completely free. A genuine prize competition relies on skill, knowledge or judgement to a level that meets the Gambling Act test.
Is a prize draw the same as a lottery?
Not necessarily. A commercial chance-based prize draw can operate outside lottery regulation where it provides a genuine free entry route that meets the legal requirements. If payment is effectively required and the prize is allocated by chance, the arrangement may instead be a lottery.
Why do UK competition sites offer free postal entry?
A genuine free entry route can allow a chance-based commercial draw to operate without being classed as a paid lottery. The route must satisfy the legal requirements, including being promoted, genuinely available and treated equally in prize allocation.
Do postal entries have the same chance as paid entries?
For a qualifying free draw, the prize allocation system should not distinguish between paid and free entry routes. Current government good-practice guidance also says paid and free entries should have an equal chance of winning each available prize.
Does a simple multiple-choice question make a draw a skill competition?
Not automatically. Gambling Commission guidance says the skill, judgement or knowledge must be sufficient to deter a significant proportion of potential entrants or prevent a significant proportion from winning. A very easy multiple-choice question will not normally achieve that by itself.
Are prize draw sites regulated by the Gambling Commission?
Lawful free draws and genuine prize competitions do not require a gambling licence simply because they offer prizes, provided they meet the legal exemption requirements. They remain subject to other law including consumer, advertising and data-protection rules.
What is the 2026 Voluntary Code for prize draw operators?
It is a government-backed voluntary code for chance-based prize draw operators using paid and free entry routes. Existing signatories were expected to implement it by 20 May 2026. It covers player protection, transparency and accountability, but it is not legislation or a government licence.
Does being a DCMS Code signatory mean a competition site is government approved?
No. Signatory status is a factual transparency point only. The code is voluntary, does not replace existing law and is not a government licence, approval or guarantee.
Does a cheaper competition ticket mean better odds?
No. Ticket price alone says nothing about the chance of winning. The number of valid entries, the number of prizes and the draw mechanism matter. A 10p ticket in a draw with one million possible entries may have longer odds than a £5 ticket in a draw capped at 10,000 entries.
How do you calculate prize draw odds?
For a simple random draw with one prize and equally weighted entries, divide the total final valid entries by the number of entries you hold. For example, 10 entries among 10,000 valid entries is approximately a 1 in 1,000 chance. More complex draws need a different calculation.
What happens if a prize draw does not sell all its tickets?
The terms control the legal position, but the 2026 voluntary code says signatory operators should not lower a prize, extend a draw or cancel it because of low ticket sales and should award the advertised prize or a reasonable cash alternative.
Can a competition site give cash instead of the advertised prize?
This depends on the promotion terms. ASA guidance says an advertised prize should be awarded as described or replaced with a reasonable equivalent of similar nature and value. Some operators also advertise an optional cash alternative from the outset.
How should a prize draw winner be selected?
The 2026 voluntary code says selection should be independent or independently supervised unless a verifiably random and auditable computer process or certified physical draw machine is used. The operator should explain the mechanism.
Why do some people seem to win competition sites more than once?
Repeat winners can occur naturally, especially where regular entrants buy or submit many entries across many draws. A repeat win is not by itself proof that a draw is unfair. The more useful checks are the published entry limits, winner-selection process and evidence that the advertised winner received the prize.
Are instant-win competitions different from normal prize draws?
Yes. Instant-win products can use predetermined or randomly allocated winning outcomes rather than waiting for one final draw. The exact mechanism should be explained in the operator's terms. Under the 2026 voluntary code, signatories should not accept credit-card payments for instant-win prize draws.
Are Facebook and TikTok raffles legal in the UK?
Some may be lawful, but a paid chance-only online raffle run for private or commercial gain without the required legal structure is likely to be an illegal lottery. The label raffle, giveaway or competition does not decide its legal status.
Can a normal business run a lottery for profit?
Ordinary commercial businesses cannot simply run paid chance-only lotteries for private gain. Society and local-authority lotteries operate under specific rules, while the National Lottery has its own statutory licensing framework. Commercial free draws and qualifying skill competitions can operate outside lottery licensing if they meet the relevant tests.
Is Omaze a lottery?
Omaze UK describes its promotions as prize draws and provides a postal alternate method of entry with no purchase necessary. Its current rules say each eligible entry has an equal chance of winning. MLL covers Omaze in detail on a separate guide.
Is BOTB a lottery?
BOTB currently operates several formats. Its Dream Car product uses a judged Spot the Ball skill competition, while it also operates other skill-based and free-entry competitions. The exact format should be checked for the individual promotion.
What should I check before paying to enter a competition site?
Check the promoter's identity, entry method, free route where applicable, maximum entries or odds information, closing date, prize and cash-alternative terms, winner-selection method, winner history, spending controls, complaints process and the current terms for that exact promotion.
Official, operator and community research
Sources for Lottery vs Prize Draw vs Competition
Legal and regulatory claims are based primarily on Gambling Commission, DCMS and ASA/CAP material. Operator examples were checked against current official pages or terms. Community discussions were used to identify recurring user questions, not to establish allegations as fact.
- Gambling Commission — Free draws and prize competitions — free entry and skill tests.
- Gambling Commission — Lottery definition — payment, prizes and chance.
- Gambling Commission — Current National Lottery licence — Allwyn and the Fourth Licence.
- DCMS — Voluntary Code of Good Practice for Prize Draw Operators — updated 1 September 2026.
- DCMS market study — market size, participation and operator count.
- Gambling Commission — 2026 consumer landscape research — recent participation and spending data.
- Gambling Commission — August 2026 social-media raffle research.
- ASA / CAP — Free entry routes.
- ASA / CAP — High-value prize promotions — prizes, alternatives and closing dates.
- ASA / CAP — Prize draws — winner-selection principles.
- Omaze UK — Official Rules — current paid and alternate entry structure.
- Omaze UK — Postal Entry Route — current processing and equal-chance wording.
- BOTB — How to Play — current Spot the Ball, skill and free-entry formats.
- Elite Competitions — Terms — postal-entry and equal-chance wording.
- McKinney Competitions — current ticket caps, sale progress and free-entry examples.
- 7 Days Performance — current instant-reveal and postal-entry examples.
Are Social-Media Raffles Legal in the UK?
Some promotions on social media are lawful, but a paid chance-only raffle run online for private or commercial gain can be an illegal lottery if it does not have the required lawful structure.
A Professional Page Is Not Proof of Legality
Gambling Commission research found consumers often rely on visible winners, familiar hosts, comments and a polished presentation rather than formal checks.
The Label Can Be Misleading
Hosts use words such as raffle, competition, lottery, tombola and giveaway inconsistently. The mechanics determine the legal position.
Low Ticket Prices Can Reduce Scrutiny
The Commission found that low-cost, mobile-first participation can feel casual and low risk, making people less likely to question legality.
The Entrant Is Not the Person Breaking the Lottery Law
The Commission's 2026 research makes clear that the potential illegality concerns the host running the unlicensed lottery, not the consumer who entered it.