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Online raffles in the UK, explained

Last updated · 5 min read

Short answer

In the UK, most things advertised online as a "raffle" are not raffles in the legal sense. A true raffle is a type of lottery, decided purely by chance, and running one for private profit needs a Gambling Commission licence. The low-cost "raffles" you see run commercially are almost always prize competitions instead: they add a genuine skill question or a free entry route, which takes them outside lottery law under the Gambling Act 2005. Same idea to a player, different legal footing, and worth knowing which you are entering.

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 small lottery, and a lottery is any scheme where you pay to enter and prizes are allocated wholly by chance. A prize competition is different: it uses skill, knowledge or a free entry route, so it is not decided by chance alone.

Why the difference matters

A lottery run commercially for profit needs a Gambling Commission licence, and only certain bodies, such as charities, societies and local authorities, can run smaller ones under specific rules. Running an unlicensed lottery is a criminal offence.

A prize competition needs no gambling licence, because the skill question or the equal free entry route takes it outside the definition of a lottery. That is the legal box almost every commercial "online raffle" actually sits in, ours included.

How to tell which one you are entering

Two 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 a prize competition, not a lottery.
  • Is there a free postal entry route on the same odds as paying? If yes, that is the other lawful route out of lottery law.
  • If neither is present and you are paying to enter a pure-chance draw, it should be a licensed lottery. If it is not licensed, walk away.

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 lawful, licence-free version of the thing you were picturing, with cash prizes paid straight to your bank.

Common questions

Is a prize competition the same as a raffle?

Not in law. A raffle is decided purely by chance; a prize competition adds skill or a free entry route, so it falls outside lottery law. 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 lawful prize competition must offer a free entry route, usually by post, on the same odds as paying. So you can always take part without paying.

Related guides

Are prize competitions gambling?Skill-based prize competitions are not gambling under UK law and need no licence. Here are the two rules that decide it, and how to check any site meets them.Free postal entry, explainedHow to enter a UK prize competition free by post, why the odds are identical to a paid entry, and what a site has to do for the free route to be lawful.

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